Issues and Trends | May 2022

 

Insight

Insurance: NAIC 2022 Spring meeting

We report on actions and discussions about ongoing projects on conference calls and at the NAIC 2022 Spring meeting.


Applicability

  • All insurance companies

Key impacts

The National Association of Insurance Commissioners (NAIC) adopted the following guidance:

  • A proposal to add a new general interrogatory to the Annual Statement to require disclosure when cryptocurrencies are directly held or accepted for the remittance of premiums.
  • A redesigned climate risk disclosure survey.

The NAIC exposed revisions to the following guidance:

  • SSAP Nos. 25 and 43R to clarify the identification and reporting of affiliated transactions, and add annual statement disclosures to identify investments held that involve related parties.
  • SSAP No. 86 to expand effective hedge relationships consistent with ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.
  • A proposal for reflecting all future hedging strategies in VM-20: Requirements for Principle-Based Reserves for Life Products and VM-21: Requirements for Principle-Based Reserves for Variable Annuities.
  • Actuarial guideline on modeling of complex and high-yield assets in asset adequacy testing.
  • A proposal to require insurers to report various analytical measures about each security reported on Schedule D, Part 1 – including metrics such as its current market yield, interest rate sensitivity, spread relative to risk-free securities (e.g. US Treasuries), and average remaining life.

Report contents

  • Meeting highlights
  • Accounting highlights
  • Actuarial highlights 
  • Group capital calculation
  • Risk-based capital
  • Valuation of securities task force
  • Financial stability task force
  • Climate risk 

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