Insurance: NAIC 2023 Fall meeting, Jan 2024 SAPWG call

Key Impacts

The National Association of Insurance Commissioners adopted the following guidance:

• Revisions to SSAP No. 2R to further restrict investments reported as cash equivalents or short-term investments.
• Revisions to the Annual Statement Instructions to remove guidance permitting the allocation of non-interest related losses to the interest maintenance reserve.
• Revisions to SSAP No. 54R to clarify that a gross premium valuation under Appendix A-010 and cash flow testing under AG 51 are both required.
• INT 23-04 to provide accounting and reporting guidance for ceding entities with reinsurance balances to or from Scottish Re in liquidation.
• A model bulletin in response to the need for a framework around the use of artificial intelligence systems in insurance.

The NAIC exposed revisions to the following guidance:

• SSAP No. 21R to add a disclosure to expand the reporting lines on Schedule BA to report collateral loans by the type of collateral that secures the loan, effective for year-end 2024 reporting.
• SSAP No. 93 to update guidance for tax credit investments and SSAP No. 94 to clarify the scope.
• Purposes and Procedures Manual of the NAIC Investment Analysis Office to update the definition of an NAIC designation. 
• Purposes and Procedures Manual of the NAIC Investment Analysis Office authorizing the procedures for the Security Valuation Office’s discretion over NAIC designations assigned through the filing exemption process.

The NAIC discussed the following guidance:

• Intent to nullify INT 03-02 because it is inconsistent with SSAP No. 25 for economic and non-economic related party transactions.