State Regulators Might Make Annuity Issuers’ Risk Scores Secret
March 12, 2025 by Allison Bell
The National Association of Insurance Commissioners could try to make insurance companies’ financial health summary scores confidential.
The Capital Adequacy Task Force, part of the NAIC, is considering a proposal that would discourage the release of risk-based capital ratios.
Ohio regulators have called for prohibiting any insurer from putting its RBC ratio in its earnings-related press releases, webcast materials or presentations.
Wink’s Moore on the Market: Can you imagine RBC ratios becoming a secret?
Straight from Allison Bell, at ThinkAdvisor‘s, desk…
The National Association of Insurance Commissioners (NAIC) could try to make insurance companies’ financial health summary scores confidential.
“‘Use of RBC is limited to identifying potentially weakly capitalized companies to facilitate regulatory action and oversight,’ according to text Ohio regulators want to add to the preamble, or official introduction, to current RBC ratio model rules. ‘Any other application of RBC would be inappropriate to the detriment of policyholders, companies, and investors.'”
“If the NAIC ends up adopting the RBC ratio proposal, consumers and their advisors could eventually lose access to one indicator of life and annuity issuers’ financial strength.”
Do any of you use RBC in assessing the financial strength of insurers? -sjm
