Insurance: NAIC 2023 Spring meeting

Applicability

• All insurance companies 

Key impacts

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

• SSAP No. 34 to add disclosures for interest income due and accrued and for paid-in-kind interest included in the current principal balance.
• Proposal to add a line in the risk-based capital calculation (RBC) to isolate residual tranches reported on Schedule BA and the asset valuation reserve and to add residual tranches to the sensitivity testing exhibits for RBC. 

The NAIC exposed revisions to the following guidance:

• SSAP No. 21R to clarify that pledged assets must qualify as admitted invested assets for a collateral loan to be admitted.
• SSAP Nos. 21R, 26R, 43R and other affected SSAPs related to the principles-based bond project and a proposal to split Schedule D, Part 1 into two sections.
• INT 23-01 to provide limited-time, optional, statutory accounting guidance that would allow insurers to admit a portion of negative IMR
• Nullification of INT 03-02 because it is inconsistent with SSAP No. 25 for economic and non-economic related party transactions.
  

The NAIC discussed the following guidance:

• Revisions to SSAP No. 93 to expand current guidance to capture all tax equity investments that qualify under specified criteria and provide general federal business tax credits and state tax credits including state premium tax credit programs.
• Quantitative results for the Economic Scenario Generator field test.
• Amendments to the Purposes and Procedures Manual of the NAIC Investment Analysis Office to exclude structured equity and feeder funds from being eligible for the filing exempt process.
  

Report contents

• Meeting highlights
• Accounting highlights
• Actuarial highlights  
• Risk-based capital
• Valuation of Securities Task Force
• Big data and artificial intelligence
• KPMG Financial Reporting View
• Acknowledgments