October 14, 2016 4:45 PM

TDI recommends updated reinsurance regulations for Texas

Concerns will center on whether new guidelines will provide sufficient safeguards, despite dropping collateral requirements

The Texas insurance market is pressing lawmakers to consider updated regulations for reinsurance to keep the state’s insurance pool competitive and affordable.

NAIC, the National Association of Insurance Commissioners, drafted legislation in 2011 that loosened the reins on the reinsurance market. To date, 35 states have adopted the legislation, with another 6 considering it. Insurance Commissioner David Mattax said the regulations maintained appropriate oversight while loosening collateral requirements.

By Kimberly Reeves