Florida has lowered its reinsurance market entry barriers for three more Bermuda reinsurers.

Ace Tempest Re, Hiscox Bermuda and Partner Re are the latest to have struck agreements with the Florida Office of Insurance Regulation for lower collateral requirements to do business in the hurricane-prone state.

German reinsurance giant Hannover Re was the first non-US reinsurer to be approved for lower collateral requirements by Florida back in February this year, followed by XL Re, the Bermuda-based reinsurance unit of XL Group plc, in June. Hannover Re's Bermuda unit followed in September. "Florida has played a key role in modernising the US reinsurance market," said Florida Insurance Commissioner Kevin McCarty. "These collateral agreements are intended to encourage additional investment in Florida's property insurance marketplace."

Mr. McCarty added that the latest three reinsurers to strike collateral agreements had met the regulator's requirements for financial strength and surplus in excess of $100 million. As of the end of last year, Ace Tempest Re reported $5.1 billion in surplus, Hiscox reported $808 million and Partner Re $3.4 billion.

Florida will now require the companies to post collateral of 20 percent of loss reserves, instead of 100 percent up to now, clearing the way for the six firms to write more reinsurance business in the Sunshine State.

Many in the industry are hoping that other states follow suit. ABIR has described the collateral requirements as "an impediment to cross-border trade".