Corporate governance requirements
At the Spring 2013 National Meeting of the National Association of Insurance Commissioners (NAIC) in Houston, the organization’s Corporate Governance (E) Working Group took a big step toward enhancing corporate governance requirements for insurers.
The Working Group finalized and adopted its Proposed Responses to a Comparative Analysis of Existing U.S. Corporate Governance Requirements and asked the NAIC to approve the development of a model law and model audit rule on corporate governance, a request to which the NAIC assented.
While many insurers, especially larger ones, may already be well positioned to satisfy the enhanced requirements, almost all insurers may benefit from staying informed on the proposed changes and becoming involved in the process of formulating the model laws and new requirements. Smaller insurers may also wish to begin working to ensure they will be able to meet these new requirements when they are adopted.