The Tennessee Department of Commerce and Insurance (TDCI) has joined the Multilateral Memorandum of Understanding (MMoU), an international supervisory cooperation and information exchange agreement. The MMoU is part of the International Association of Insurance Supervisors (IAIS), a global standard-setting body promoting effective and globally consistent supervision of the insurance industry.
According to TDCI Commissioner Julie Mix McPeak, the agreement strengthens the department’s ability to work co-operatively with other supervisory bodies and to monitor large cross-border insurers.
“Such cooperation is critically important to foster effective supervision, to enhance financial stability and to protect Tennessee consumers,” McPeak said.
The MMoU is a global framework for cooperation and information exchange among insurance supervisors. It sets minimum standards to which signatories must adhere. All applicants are subject to review and approval by an independent team of IAIS Members. Through membership in the MMoU, supervisors are able to exchange relevant information with and provide assistance to other signatories, thereby promoting the financial stability and sound supervision of cross-border insurance operations for the benefit and protection of consumers.
“We are pleased to welcome the TDCI as the latest signatory to the MMoU—the number of signatories continues to increase,” said Victoria Saporta, chair of the Executive Committee of the International Association of Insurance Supervisors (IAIS). “In order to achieve our ultimate goal of policyholder protection within the global insurance marketplace an insurance commissioner must be able to cooperate quickly and effectively. The MMoU is an essential regulatory tool—not only in crisis situations, but on a day-to-day basis—for supervisors to foster safer and more stable insurance markets.”
Since the first jurisdiction was admitted in June 2009, membership in the IAIS MMoU has grown to now include 61 signatories.
Other MMoU state signatories from the United States include California, Connecticut, Delaware, Florida, Iowa, Maine, Michigan, Nebraska, Pennsylvania, Virginia and Washington.
Source: Tennessee Department of Insurance & Commerce
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