NAIC Update: Summer 2013
Indianapolis hosted the National Association of Insurance Commissioners (NAIC) meeting this summer in what can be described as a relatively calm gathering, despite a few flashes of passion.
The organization continued its lightning fast move toward new corporate governance standards and its work on the Own Risk and Solvency Assessment (ORSA) and new reinsurance collateral continued their march ahead.
Still, with the meeting’s forward movement, there were obvious challenges. New York, one of the largest jurisdictions in the NAIC, had previously served notice of its discontent with the current use of captives by life insurers and opposed the introduction of principle-based reserving (PBR) for life insurance companies, alongside another large jurisdiction and California.
Regulators, for the most part, stood firm in their praise of the current state regulatory system, aided by the largest contingent of state insurance legislators ever to attend an NAIC meeting. Led by Connecticut’s Thomas Leonardi, regulators repeatedly expressed concern about what could be seen as attempted intrusions by the G-20’s Financial Stability Board (FSB) into insurance regulation, most directly through its work with the International Association of Insurance Supervisors (IAIS).
This issue of the NAIC Update features the following:
- International pressure affects U.S. regulators
- Reinsurance collateral reductions on track
- Group supervision ICP causes concern
- Corporate governance changes move to completion
- Issues raised with contract exposure drafts