A new arm of the National Association of Insurance Commissioners will be studying ways to improve regulation of conglomerates that include insurance companies.
The Group Solvency Issues Working Group, a part of the NAIC’s new Solvency Modernization Initiatives Task Force, has included that task in a list of 2009 charges posted on the Web site of the NAIC, Kansas City, Mo.
The NAIC’s Executive Committee formed the solvency task force to update the laws and regulations governing solvency:
The solvency task force formed the group solvency working group to “identify any necessary changes to the Holding Company Model Act resulting from a study of the current model’s limitations evident in the U.S. regulatory system during the current economic crisis and/or from international initiatives related to group-wide supervision,” according to a draft description of the working group’s charges distributed at the recent NAIC meeting in San Diego.
The working group now has posted a final version of its charges on the Web.
The working group says it will study whether there is a need to change the way state and federal regulators interact.
The working group also will study the need to develop a group-wide supervision system, which might include group-wide capital requirements, working group officials write in the list of charges.
“The study should consider possible approaches to such capital requirements, including how capital for financial conglomerates and non-regulated entities are calculated,” officials write.
Other charges include coming up with recommendations regarding cross-state and cross-sectoral communications and communicating with the International Association of Insurance Supervisors, Basel, Switzerland, regarding efforts to improve the solvency regulation system.