The growing globalisation of insurance markets and need for regulators to co-operate together to deal with issues such as companies impacted by the sub-prime crisis and American International Group Inc. (AIG) has prompted a deal to be struck between the Bermuda Monetary Authority (BMA) and the New York State Insurance Department (NYSID).

The Memorandum of Understanding (MOU) was drawn up between the two parties to support their ongoing interaction and working relationship.

The MOU, which was signed by the BMA's CEO Matthew Elderfield and Eric Dinallo, Superintendent of Insurance of the NYSID and takes immediate effect, sets out agreed procedures for co-operation between the two regulatory bodies.

This includes the exchange, handling, protection and return of information relevant to their respective markets for regulatory purposes. The MOU also covers procedures for the regulators to both request and provide investigative assistance, where appropriate, with respect to companies and individuals conducting insurance business in Bermuda and New York.

Mr. Elderfield said: "We are very pleased to have established this MOU with our colleagues at the NYSID. The BMA has already had a long-standing history of cooperation with the NYSID team.

"We have worked effectively together on matters involving insurance firms of mutual interest to our respective jurisdictions. Our most recent collaboration on firms within the financial guaranty sector impacted by sub-prime and matters related to AIG has underscored the need to ensure regulators can co-operate quickly and effectively in the global insurance market.

"We look forward to building on our existing positive working relationship with Eric and his team with this new agreement."

Mr. Dinallo said: "In light of the increasing globalisation of insurance markets, regulators need to co-operate in order to provide proper oversight and protection. Bermuda and New York are among the leading centres of the insurance industry, and our willingness to cooperate as evidenced in this agreement demonstrates our commitment to effective regulation.

"Recently, we have been working closely on protecting AIG policyholders worldwide, and this agreement formalises the co-ordination and cooperation between us."