Despite a few flashes of passion, the summer 2013 National Association of Insurance Commissioners (NAIC) in Indianapolis can be described as a relatively calm gathering. The organization had forward movement on many topics such as work on ORSA and corporate governance standards, but challenges including New York’s opposition to principle-based reserving (PBR) for life insurance companies remained.
NAIC Summer 2013 meeting
Indianapolis hosted the NAIC summer 2013 meeting with lightning fast movement toward new corporate governance standards, its work on the Own Risk and Solvency Assessment (ORSA) and new reinsurance collateral. Still, with the meeting’s forward movement, there were challenges such as New York’s discontent with the current use of captives and introduction of principle-based reserving (PBR) for life insurers.
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).
Features of the NAIC Update
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
- Actuarial, accounting and health updates