The National Association of Insurance Commissioners (NAIC) is pursuing a new model law to allow for a framework to collect confidential information on insurers’ corporate governance practices.
The development of this model law is meant to protect the confidentiality of governance information collected from insurers and assist U.S. regulators in achieving greater consistency with international standards.
The NAIC’s Corporate Governance Working Group, which proposed the new model law, has spent several years studying the issues and has identified a need to collect and review corporate governance information of insurers in the period between onsite examinations by the states.
The full NAIC agreed and voted on this and other proposals during a July 26 NAIC Executive/Plenary Committee conference call.
The working group considered amending other existing model laws or requirements such as the Risk-Based Capital for Insurers Model Act, Own Risk and Solvency Assessment (ORSA) Model Act and the annual statement filing, but couldn’t find a framework that could be extended to allow for the collection and protection of confidential information.