Bermuda, Japan & Switzerland Added to NAIC List of Reciprocal Jurisdictions
Three international regulatory authorities were approved by the NAIC as Reciprocal Jurisdictions. Under the NAIC's Process for Evaluating Qualified and Reciprocal Jurisdictions (Process), the Bermuda Monetary Authority (BMA); Japanese Financial Services Agency (FSA); and Swiss Financial Market Supervisory Authority (FINMA) will be placed on the NAIC List of Reciprocal Jurisdictions effective January 1, 2020.
The NAIC released a Budget and Fiscal Impact Statement (BFIS) for a two-week comment period. The fiscal is in regards to a Principle-Based Reserving yearly renewable term (YRT) reinsurance study.
The proposed study is intended to provide information needed to develop a permanent solution to address an inconsistency in company interpretations regarding the modeling of YRT reinsurance. Once completed, the adopted permanent solution will be incorporated into the Valuation Manual.
The U.S. Virgin Islands Receives NAIC Accreditation
TheU.S. Virgin Islands Office of Insurance is now accredited under the NAIC Financial Regulation Standards and Accreditation Program. It was the first accreditation for the territory and was announced at the Fall National Meeting in Austin, TX.
NAIC Supports FSOC Adoption of Activities-Based Approach to Systemic Risk
The guidance issued by the Financial Stability Oversight Council (FSOC) appropriately prioritizes activities-based approaches to identifying systemic risk and the importance of working with regulators to address concerns. It will also ensure a more robust exit-ramp for any designated firms and provides more transparency into the reasons for designation. The NAIC has long advocated for these changes and appreciates the revisions adopted by FSOC.