NAIC 2019 Fall Meeting Newsletter

More About | Insurance | Risk & Regulatory

The following represents a summary of the key actions and decisions made by the National Association of Insurance Commissioners (NAIC) during the 2019 Fall National Meeting.

Executive Summary
  • The Big Data (EX) Working Group continues to work towards the development of best practices designed to assist regulators with their review of predictive models while maintaining insurer confidentiality.
  • The Health Risk-Based Capital (E) Working Group discussed to the annual statement health test premium ratios.
  • The Life Risk-Based Capital (E) Working Group exposed proposals sponsored by the Longevity (A/E) Subgroup and the Academy of Actuary’s (the “Academy”) to introduce longevity risk into the life risk-based capital model.
  • The Property and Casualty (P&C) Risk-Based Capital (E) Working Group adopted clarifying guidance to assist entities with the determination of their credit risk for reinsurance receivables when the counterparty is a Lloyd’s of London syndicate.
  • The group capital calculation field testing was substantially completed, and a revised calculation is anticipated to be exposed at the 2020 Spring National Meeting.
  • The Financial Stability (EX) Task Force exposed a draft of the 2019 Liquidity Stress Test Framework which is part of the NAIC’s Macroprudential Initiative.
  • The Statutory Accounting Principles (E) Working Group exposed substantive revisions to SSAP No. 32, Preferred Stock, and sponsored the development of a new issue paper to address the accounting for collateralized fund obligations.
  • Finally, there were several revisions or changes adopted by the Blanks (E) Working Group which are captured in Appendix A.