An arm of the National Association of Insurance Commissioners is joining with insurance regulators from Australia and Chile to take on an international task force.
The International Insurance Relations Leadership Group reported on its activities earlier this week in Minneapolis, at the summer meeting of the NAIC, Kansas City, Mo.
The International Assocation of Insurance Supervisers, Basel, Switzerland, created an IAIS New Focus Task Force in late 2008, to “develop options for a broad new ‘vision’ for the IAIS,” the IIRLG told the NAIC’s executive committee.
The IAIS set up the task force in response to demands both from member countries and from the Financial Stability Board, Basel, and the Group of Twenty Finance Ministers and Central Bank Governors, London, the IIRLG says.
“Despite a broad mandate, the task force quickly devolved into a narrow concentration on an international benchmark for assessing solvency of ‘internationally active insurance groups,’” the IIRLG reports.”In response to the altered direction of the task force, the NAIC withdrew from the chairmanship and has been working with two other task force members (Australia and Chile) on an alternative response to the task force report. A final report will be distributed to the IAIS executive committee in June.”
In other NAIC meeting news:
– The NAIC’s Suitability of Annuity Sales Working Group reported that it agreed shortly before the summer meeting started to expose the latest draft of a proposed Suitability in Annuity Transactions Model Regulation. The model would require annuity sellers to gather certain types of information about applicants, and it would set up rules that would govern insurer supervision systems and procedures. The working group hopes to complete the revisions by the end of the year.
– The Financial Condition Committee approved revisions to the Health Risk-Based Capital Model Act. The revisions include use of a new “trend test” — or review of changes in RBC levels over time — that would be similar to an RBC trend test proposed for life and property-casualty insurers. The committee also asked the NAIC’s Capital Adequacy Task Force to look into how transactions involving the Federal Reserve’s Term Asset-Backed Securities Loan Facility ought to be treated.
– The NAIC/Consumer Liaison Committee heard a presentation on efforts to address privacy concerns related to the Market Conduct Annual Statement project. The committee wants to find a way to keep genuinely confidential market conduct data confidential while providing data that is essential to market analysis available for consumers, the committee says.