Two of XL Group’s Bermuda-based subsidiaries have received approval from the New York Insurance Department (NYID) to qualify for reduced collateral status in the state of New York pursuant to requirements set forth by New York insurance regulation.The news gives XL Insurance (Bermuda) Ltd and XL Re Ltd a competitive advantage, as they will have to post collateral for only 20 percent of loss reserves rather than the 100 percent required of non-eligible non-US insurers.New York is the second state, after Florida, to lower collateral entry barriers to non-US insurers.To qualify the NYID requires companies to be considered financially strong by credit rating agencies and other industry regulators, among other criteria.In its approval letter to XLIB and XL Re Ltd, the NYID cited various reasons for granting approval including the entities’ secure financial strength ratings and strong solvency position.XL chief executive officer Mike McGavick said: “Once again XL is proud to be among the list of Bermuda companies who have qualified for reduced collateral status in a US state.“Last year, XL Re Ltd was the first Bermuda reinsurer to be granted similar status in Florida by the Florida Office of Insurance Regulation. The elimination of unnecessary collateral requirements on foreign insurers and reinsurers is not only beneficial for the individual companies but for the industry as a whole.”