NAIC Update: Winter 2013
Washington D.C. hosted the National Association of Insurance Commissioners (NAIC) meeting in December days after the issuance of the long-awaited Federal Insurance Office (FIO) report on insurance regulation modernization.
The FIO’s report seemed merely to nibble at the edges of the current regulatory structure, in what might have been a big relief for state regulators. But there were still differences among state regulators at the meeting, with issues including the use of affiliated captives by life insurers, Affordable Care Act accounting measures, and NAIC corporate governance prompting open disputes during working sessions. Still much was positive, including the results of the 2013 ORSA pilot.
A joint EU-U.S. forum heard strong support from various industry representatives for the NAIC’s position in opposition to global insurance capital standards (ICS), perhaps strengthening the NAIC’s standing internationally. In addition, concern was again raised about the lack of insurance expertise on the Financial Stability Oversight Council (FSOC).
Additionally, although there was lack of heat surrounding the discussion of Principle-Based Regulation (PBR) for life insurers, supporters of the Corporate Governance Model Act may have felt some frustration as concerns over an associated guidance manual stalled the planned adoption of that next leg of the Solvency Modernization Initiative.
This issue of the NAIC Update features the following:
- Corporate governance model hits snag
- Reinsurance changes move forward at NAIC, states
- 2013 ORSA pilot results are positive
- Life insurer-owned captive use concerns regulators
- A private equity leader provides assurances on the staying power of the sector’s capital
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