Issues & Trends   |   April 2018
 

Insurance: NAIC 2018 spring meeting

KPMG reports on actions taken on conference calls and at the Spring 2018 meeting of the National Association of Insurance Commissioners. The NAIC discussed recent accounting change and regulatory developments impacting insurance companies. 

Applicability

NAIC 2018 Spring Meeting

  • All insurance companies

Relevant dates

  • Effective immediately

Key impacts

As part of its discussions, the NAIC adopted INT 18-01 and exposed the following:

  • Revisions to SSAP No. 101 to provide guidance for the effects of the Tax Cuts and Jobs Act (TCJA). Comments were specifically requested on the assessment of the reversal patterns of deferred tax items resulting from the TCJA
  • Issue paper with a proposed treatment for certain derivative contracts related to variable annuity contracts that do not qualify to use the hedge accounting guidance in SSAP No. 86/Podcast
  • A discussion document on how the recently issued ASU 2016-13 on credit impairment could be considered for statutory accounting
  • A revised memo on the treatment of senior debt and surplus notes, and a memo on the scope of the group in the group capital calculation

The NAIC also discussed comments about the variable annuity framework, the group capital calculation and the Covered Agreement.

Report contents

  • Meeting highlights
  • Investments
  • Principle-based reserving
  • Variable annuities
  • Group capital calculation
  • Covered agreement
  • Risk-based capital
  • Other accounting highlights
  • Other actuarial highlights

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