Issues & Trends | December 2018

Insurance: NAIC 2018 fall meeting

Filed under: Industry, Insurance

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


  • All insurance companies

Relevant dates

  • Effective immediately

Key impacts

As part of its discussions, the NAIC adopted:

  • Revisions to SSAP No. 30R expanding the definition of common stock to include US SEC registered closed-end funds and unit-investment trusts
  • Revisions to SSAP No. 86 incorporating the hedge effectiveness documentation requirements included in the recent targeted improvements to the US GAAP derivative accounting model. Effective January 1, 2019, with early adoption permitted for year-end 2018 and specific early adoption requirements for companies that also prepare US GAAP financial statements  
  • SSAP No. 108 prescribing accounting and reporting guidance for derivatives that hedge the interest rate risk of variable annuity guarantees that are reserved under VM-21. Effective January 1, 2020, with early adoption permitted as of January 1, 2019
  • Modifications to the life principle-based reserving (PBR) exemption primarily removing the risk-based capital (RBC) requirement
  • Revisions to the Credit for Reinsurance Model Law and Credit for Reinsurance Model Regulation incorporating the relevant provisions of the Bilateral Agreement and extending similar treatment to other jurisdictions meeting similar criteria

Report contents

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



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