The Bermuda Monetary Authority (BMA) yesterday announced the signing of a Memorandum of Understanding (MOU) with the Florida Office of Insurance Regulation (FLOIR) as it forges stronger links with its regulatory counterparts overseas.

Matthew Elderfield, CEO of the BMA, and Kevin McCarty, Florida Insurance Commissioner, signed the MOU yesterday. The agreement takes immediate effect and establishes a formal basis for consultation, co-operation and coordination between the Authority and the FLOIR, including the exchange of information relevant to each agency's supervisory, regulatory and examination responsibilities in relation to insurance companies of mutual interest.

"We are very happy to be building on our existing history of cooperation with our colleagues at the Florida Office of Insurance Regulation by establishing this MOU," said Mr. Elderfield.

"The Bermuda reinsurance market provides a critically significant level of support to Florida-based insurers.The MOU means we can assist each other on supervisory matters involving companies of common interest within our respective markets.

"Taking such actions is in the ultimate interests of policyholders and supports overall stability in the insurance market."

Commissioner McCarty also welcomed the formalising of relations between the two agencies.

"Just as we work closely with other state regulators in this country to monitor company solvency and implement consumer protections, we must also increase our cooperation with our international counterparts," he said.

"As we observed during the downturn in our economy a year ago, America's insurance markets are systemically intertwined with those of other countries."