Insurers and reinsurers should be taking the time to understand – and comment on – massive changes in financial rules that are now in the planning stages.
Insurance accounting consultants at Deloitte Touche Tohmatsu, New York, have published that advice in a new on looming changes in U.S. and international solvency regulation.
In the United States, the Dodd-Frank Wall Street Reform and Consumer Protection Act could lead to greater federal involvement in solvency oversight, the Deloitte consultants say.
The Solvency Modernization Initiative at the National Association of Insurance Commissioners, Kansas City, Mo., could lead to a total recalibration of states’ risk-based capital system and changes in corporate governance and group supervision rules, the consultants say.
At the international level, the consultants say, the International Association of Insurance Supervisors, Basel, Switzerland, has announced a ComFrame project that could lead to changes in now Europe’s Solvency II regulatory system is applied to internationally active insurers.
“As the regulatory landscape shifts, and efforts to modernize and streamline the industry unfold, insurers and reinsurers should take the opportunity to be part of the process — not only to play a part in influencing what is going on around them but to be sure they continue to meet the product and services needs of consumers,” the consultants say.