Issues & Trends  |  December 2017

 

Insurance: NAIC 2017 Fall Meeting

KPMG reports on actions taken on conference calls and at the Fall 2017 meeting of the National Association of Insurance Commissioners. The NAIC discussed recent accounting change and regulatory developments impacting insurance companies.

Applicability

NAIC 2017 Fall Meeting

  • All insurance companies

Relevant dates

  • Effective immediately

Key impacts

As part of its discussions, the NAIC adopted:

  • Revisions to SSAP No. 86 to add aggregate disclosures about derivative contracts with deferred or financing premiums for year-end 2017
  • Revisions to SSAP No. 86 to recognize variation margin payments received or paid as unrealized gains or losses until the derivative instrument is sold, matures, expires or has another closing transaction
  • Revisions to SSAP No. 100R to allow the use of net asset value (NAV) per share as a practical expedient to fair value and add disclosures to identify assets valued using NAV
  • Changes to the Guaranty Association Model Act to add health maintenance organizations and provide for equitable assessment for long-term care insolvencies between accident/health and life/annuity insurers

Report contents

  • Meeting highlights
  • Investments
  • Principles-based reserving
  • Variable annuities
  • Group capital calculation
  • Covered agreement
  • Risk-based capital
  • Long-term care
  • Other accounting highlights
  • Other actuarial highlights

 

 

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