NAIC President Kevin McCarty highlighted the organization’s priority items during the NAIC’s opening reception of its Spring National meeting here in New Orleans, including among them settling the matter of Actuarial Guideline 38, finishing the principles-based reporting (PBR) platform ready for state legislatures next year and group insurance supervision.
He did so by listing the priorities of the “alphabet” parent committees, known by letters A through G.
McCarty also hilighted both about the group’s work towards standard-setting both domestically and internationally to underscore these priorities.
“The resolve of our leadership team and governing board is to set concrete deliverables to ensure the NAIC as the continues to be the standard setting agency to reform and model our domestic regulatory system, but moreover promote leadership and structure for global standard setting, for the benefit of our consumers and to promote a stable insurance market,” the Florida insurance commissioner said.
Without further ado, here are the ABCs of the NAIC’s priority items for this year:
A Life and Annuity (A) Committee: tackling the goal of finalizing the bifurcated approach to handling the interpretation issues surrounding AG 38. This is also being done under the auspices of the Financial Condition (E) Committee, as well, in a joint working group.
B The Health Insurance and Managed Care (B )Committee priorities center around exchanges. The Exchanges Subgroup will continue to review proposed federal regulations and craft comments; provide input to HHS as regulations are developed; assist states that choose to develop their own Exchange or partner with the federal exchange; and draft model regulation based on the final federal regulations, McCarty said.
C The Property and Casualty (C)Committee priority, according to McCarty’s speech, is to develop a National Flood Insurance Handbook for insurance regulators. “This resource is expected to serve as a guide to help regulators better understand the NFIP, the role of write-your-own insurers, coverage nuances, pricing, programs and limits,” he stated.
D The Market Conduct and Consumer Affairs (D) Committee priority will continue to be the Market Conduct Annual Statement—or MCAS—will continue to be a D Committee priority. The NAIC is undertaking a review use of MCAS data for national analysis and interstate collaboration and what, if any, MCAS data should be shared with the public.
E The Financial Condition (E) Committee priority is developing a model act that will enable implementation of ORSA [the Own Risk and Solvency Assessment process] reporting by insurance groups. ORSA is a domestic U.S. effort to enhance group supervision as part of the NAIC Solvency Modernization Initiative.
“The enhanced process will ensure that U.S. insurers are even more thoughtful and clear in how they identify, quantify and manage risk. As regulators, this will allow us to be even more confident in the information provided to judge capital adequacy,” McCarty said.