Skip to content Skip to footer

Loading Results

NAIC Spring 2021 Newsletter

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

The National Association of Insurance Commissioners met in March and April in virtual Spring National Meetings. This newsletter contains information on activities that occurred in meetings since January 2021, with a focus on the virtual National Meetings and subsequent conference calls through April 30.

Highlights include

  • The Special Committee on Race and Insurance continued its work to develop recommendations to increase diversity and inclusion in the insurance industry, including tools to assess unfair discrimination in insurance transactions.

  • The Group Capital Calculation Working Group has begun work on a trial implementation of its GCC template and instructions using 2020 data; the trial is expected to include a stress scenario to calculate GCC ratios at varying levels of stress, e.g. a 10% reduction in available capital.

  • The Statutory Accounting Principles Working Group adopted 1) new guidance on extending the effective date of two Interpretations that provide COVID-related accounting relief, and 2) an expanded definition of “related parties.” The working group also exposed for comment guidance on the non-admitted status of cryptocurrencies. An industry and regulator subgroup formed to draft a “principles-based definition of a Schedule D-1 bond” made significant progress this spring, with an exposure draft expected to be released for comment on May 20.

  • All three RBC Working Groups exposed for comment separate proposed bond factors for the 20 NAIC Designation categories with a goal to adopt for 2021 RBC filings. The Life RBC Working Group also exposed the ACLI’s real estate proposal and a revised longevity risk proposal (which includes five options on covariance), with a goal of 2021 adoption. The P/C RBC Working began its project to consider whether a wildfire peril risk charge should be added to the Rcat formula.

  • The VOS Task Force adopted revised guidance for financially modeled RMBS and CMBS which will convert each rating (for non-legacy securities) to a single NAIC designation category versus the current 20 price breakpoints. The task force also continued progress on guidance on private rating letter rationale reports and possible revisions to the 5% threshold for residual risk limit on conforming credit tenant loans.

  • The Blanks Working Group adopted a new Part 3 to Schedule Y to require additional disclosure of related parties and three proposals to gather additional health care data from Life, P/C and Health entities.

  • The Life Actuarial Task Force had substantive discussions on its economic scenario generator project and allowing application of a prudent assumption on future mortality improvements.

  • The Climate Risk and Resilience Task Force concluded no changes to the NAIC’s Climate Risk Disclosure Survey will be required for 2021 filings but changes for 2022 will be considered in light of recent climate events and probable federal action on enhanced climate disclosures.

Contact us

Jean Connolly

Managing Director, National Professional Services Group, PwC US

Follow us