Hiscox’s Bermuda underwriting operation has been awarded ‘certified reinsurer’ status by the state of New York.The significance is that Hiscox Insurance Company (Bermuda) Ltd can now post collateral of 20 percent of loss reserves rather than 100 percent, as was previously required.The decision by the New York Department of Financial Services was based on Hiscox Bermuda’s financial strength and its A rating from AM Best and Fitch.New York is one of a number of US states to follow Florida’s lead by reducing collateral requirements for non-US reinsurers that are highly rated and financially sound, with the intention of increasing available reinsurance capacity for US cedants. Hiscox Bermuda was permitted by the Florida insurance regulator to reduce its collateral requirements in October 2010.Krystalle Tobin, Hiscox Bermuda’s chief financial officer, said: “Reducing collateral requirements improves the reinsurance market for local insurers looking for more capacity and choice.“With the National Association of Insurance Commissioners (NAIC) recently passing the credit for reinsurance model law changes, we are optimistic that other states will move to implement similar reduced collateral requirements.”