We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (16,526)
  • Industry Conferences (3)
  • Industry Job Openings (38)
  • Negative Media (138)
  • Positive Media (73)
  • Sheryl's Articles (617)
  • Sheryl's Blogs (175)
  • Wink's Articles (241)
  • Wink's Blogs (255)
  • Wink's Press Releases (93)
  • Blog Archives

  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • Insurance Groups Want NAIC Panel to Use Existing Tools to Designate Groupwide Supervisors for International Groups

    October 1, 2014 by Thomas Harman

    WASHINGTON – Insurance industry groups want existing National Association of Insurance Commissioners’ guidelines to be part of proposed amendments to the Model Holding Company Act that would have states be groupwide supervisors for large international insurance groups.

    The NAIC group solvency issues working group has exposed an initial draft, which is intended to become a new section within the NAIC’s Model Holding Company Act to establish a process for designating groupwide supervisors for international insurance groups. The action was prompted by urging from the International Association of Insurance Supervisors for the U.S. to have direct supervision over internationally active insurers.

    Existing language concerning groupwide supervision is in the NAIC Financial Analysis and Examination handbooks that set forth principles for establishing groupwide supervision, but they are not in the formal Holding Company Model Law. State lawmakers would have to approve any changes made by the NAIC.

    The working group’s draft is based on legislation passed by Pennsylvania lawmakers that gave the state the ability to act as a global groupwide supervisor (Best’s News Service, Aug. 18, 2014).

    One joint comment letter from the National Association of Mutual Insurance Companies, the Property Casualty Insurers Association of America and the BlueCross Blue Shield Association said the existing Model Holding Company Act has served U.S. policyholders well in providing group-level oversight tools, such as supervisory colleges for international groups and the enterprise risk reports that address group-level risk. If the working group amends the Holding Company Act, “we believe that utilizing existing regulatory designations and tools would be most efficient,” the letter said.

    Steve Broadie, the PCI’s vice president of financial policy, said the NAIC draft and the Pennsylvania law go a little too far. The industry groups want the working group to change draft language that the industry believes would allow states to take extraterritorial action by being groupwide supervisors in other jurisdictions. “We question whether or not that’s legal,” he said.

    Also, the groups proposed revisions to the working group’s draft that would include procedures that are part of the NAIC’s Financial Analysis Handbook as acceptable in choosing a lead state regulator. “Adding a new designation without connecting it to the lead state regulator will only serve to create confusion in the U.S. over group supervision responsibilities,” the letter said.

    And the groups seek to include provisions that would protect existing groupwide supervisor designations for groups domiciled outside the U.S. Specifically, the groups seek language that would prohibit states from challenging a groupwide supervisor’s authority in an overseas jurisdiction.

    Finally, the groups seek to clarify the groupwide supervisor role to be that of a facilitator coordinating activities among domiciliary supervisors. This would be an alternative to compelling action on the part of group members over which the group-wide supervisor does not have jurisdiction, the letter said.

    The American Council of Life Insurers also supports the current regulatory approach regarding the commissioners’ authority to conduct groupwide supervision activities, “emphasizing coordination and collaboration among involved supervisors to facilitate a desired outcome, as distinguished from attempting to compel action that would require extra-territorial supervisory powers,” wrote ACLI Senior Counsel Kelly Ireland.

    The ACLI comments proposed changes that would use the definition of IAIGs set by the IAIS’ Common Framework for the Supervision of Internationally Active Insurance Groups, instead of using the NAIC’s definition of “international insurance groups,” the letter said. “Given this well-established and broadly supported definition of IAIGs, we believe it is appropriate to apply group-wide supervision to the set of companies meeting the ComFrame standard,” Ireland wrote. The ACLI got support on this point from comments submitted by the Reinsurance Association of America.

    Originally Posted at A.M. Best on September 30, 2014 by Thomas Harman.

    Categories: Industry Articles
    currency