Delaware has become the latest domicile to sign the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU).
Since the first jurisdiction was admitted in June 2009, membership of the international supervisory cooperation and information exchange agreement has grown to include 51 signatories representing more than 63 percent of worldwide premium volume.
“The Department of Insurance is excited to be admitted as a signatory to the MMoU, because so many insurance companies domiciled in Delaware today conduct business around the world,” said Delaware insurance commissioner Karen Weldin Stewart.
“Effective communication and cooperation with other global regulators is essential when advocating on behalf of our consumers. I look forward to working with other IAIS MMoU members to strengthen our regulation and supervision of the global insurance marketplace.”
The MMoU sets minimum standards to which signatories must adhere, and 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 glad to welcome Delaware as a signatory to the MMoU and to see the number of US signatories continue to increase,” said Felix Hufeld, chair of the executive committee of the IAIS.
“In order to achieve our ultimate goal of policyholder protection within the global insurance marketplace, an insurance supervisor needs the ability to cooperate quickly and effectively.”
Hufeld added: “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, and the IAIS encourages each of its members to become a MMoU signatory.”
Current international MMoU signatories include: Australia, Austria, Bermuda, Canada, Chile, Chinese Taipei, France, Germany, Hong Kong, Japan, the Netherlands, Qatar, Singapore, Switzerland and the UK.
US states Virginia, Washington, Pennsylvania, Nebraska, Michigan, Connecticut and California are also signatories of the MMoU.
