Bermuda has won qualified jurisdiction status from the US National Association of Insurance Commissioners (NAIC).

The move means that reinsurers licensed and based in Bermuda will be eligible to be certified for reduced reinsurance collateral requirements.

The Bermuda Monetary Authority (BMA) — along with similar bodies in the UK, Germany and Switzerland — have all been granted conditional status pending a full review next year.

BMA CEO Jeremy Cox said: “We are very pleased with the outcome of this initial step in the NAIC’s process.

“Having this status is highly relevant to the Bermuda market in terms of potentially facilitating efficiencies in the cross-border operations of Bermuda reinsurance with the US insurance market.

“We look forward to working with the NAIC to complete the process in the coming months.”

The BMA in September became the first insurance industry supervisor to agree to take part in an expedited review by the NAIC.

The NAIC is the US standard-setting and regulatory support organisation created and governed by the chief insurance regulators from US states and territories.

Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S.