NAIC Center for Insurance Policy and Research March 2016 Newsletter
Mar 28, 2016
The National Association of Insurance Commissioners (“NAIC”) Center for Insurance Policy and Research published its most recent newsletter today, March 28, 2016. Hyperlinks to the articles are provided below:
By John M. Huff, NAIC President & Director of the Missouri Department of Insurance, Financial Institutions and Professional Registration
This article, written by NAIC President and Director of the Missouri Department of Insurance, Financial Institutions and Professional Registration John M. Huff, shares his views on some of the key initiatives the NAIC and its members will be working on in 2016 and beyond including the challenges of Big Data; cybersecurity concerns; changes in health insurance markets, retirement security, principle-based reserving standards for life insurers; the private flood insurance market; and our relations with international regulators. Read More . . .
By Elisabetta Russo, NAIC ERM Advisor, and Shanique (Nikki) Hall, CIPR Manager
The Own Risk and Solvency Assessment (“ORSA”) is a new regulatory reporting tool intended to foster effective enterprise risk management and provide a group level perspective on risk and capital. The majority of states have now formally enacted the Risk Management and Own Risk and Solvency Assessment Model Act (#505) and most of the adopting states required an ORSA Summary Report to be filed by the end of 2015. As regulators gear up to review these reports, this article provides an overview of the most recent observations for completing an ORSA from the last NAIC ORSA Pilot Project. Read More . . .
NAIC to Consider Adopting Price Optimization White Paper
By Kris DeFrain, NAIC Director of Research and Actuarial
State insurance regulators are evaluating price optimization tools and whether they are allowed to be used by property and casualty insurers in their ratemaking processes. This article will summarize the proposed state regulatory actions and the policy recommendations for regulators to consider included in the NAIC Casualty Actuarial and Statistical (C) Task Force price optimization white paper. Read More . . .
Implications of a Warming World on the Insurance Industry
By Anne Obersteadt, CIPR Senior Researcher
International focus centered on adapting and mitigating the effects of climate change has intensified in recent years. This was exemplified when nearly 200 countries agreed (Paris Accord) late last year to take steps to cut global emissions to a level that would avoid the worst effects of climate change. This article examines the Paris Accord, U.S. efforts to lower carbon emissions, and identifies the risk of climate change to insurers and how they are responding to the low carbon movement. Read More . . .
Phase Two of Index-Based Illustrations Guideline Soon to Be Effective
By Reggie Mazyck, NAIC Life Actuary
March 1 ushers in the second phase of compliance with Actuarial Guideline XLIX-The Application of the Life Illustrations Model Regulation to Policies with Index-based Interest (AG 49). This article provides a brief overview of AG 49 and serves as a quick reminder for companies that have yet to complete the programming required to comply with Section 6 and Section 7 of the guideline. Read More . . .
Data at a Glance: Property and Casualty Profitability and Market Share
By Jennifer Gardner, NAIC Research and Actuarial Manager
This article features an analysis of market concentration and profitability for several property and casualty lines of business. Insurer profitability results can be used in conjunction with concentration statistics to determine whether a market is attractive to insurers to enter or unattractive. Persistently high levels of profitability could indicate that a market is failing to attract competitors, thus enabling non-competitive rates of return to be earned. Read More . . .
IAIS Releases 2015 Global Insurance Market Report
By Edward L. Toy, Director, NAIC Capital Markets Bureau Director and Chair of the IAIS Macroprudential Policy and Surveillance Working Group
The International Association of Insurance Supervisors recently released its 2015 Global Insurance Market Report (“GIMAR”). The annual report discusses the global insurance sector from a supervisory perspective, focusing on the sector’s performance as well as key risks faced by it. This article will provide a summary of key developments in the global insurance market, as well as the special topics included in the GIMAR. Read More . . .
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