Many panels at the National Association of Insurance Commissioners are looking into life insurers’ request for changes in capital and surplus requirements.
The American Council of Life Insurers, Washington, has asked for the changes to help member insurers increase their flexibility and cope with the current economic environment.
The life industry risk-based capital ratio has dropped to about 300, from 370 at the beginning of the year, Bruce Ferguson, an ACLI senior vice president, said here at the winter meeting of the NAIC, Kansas City, Mo.
Ferguson acknowledged the need for regulators to evaluate the ACLI’s capital and surplus proposal carefully.
But it is also important to take action, Ferguson said.
NAIC bodies that are reviewing the ACLI proposal include the Life & Health Actuarial Task Force, the Life Risk Based Capital Working Group, the Reinsurance Task Force, the Statutory Accounting Principles Working Group and a new Capital and Surplus Relief Working Group.
The Reinsurance Task Force is looking at whether states should be allowed discretion in deciding what is acceptable collateral for reinsurance ceded, NAIC meeting attendees said.