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NAIC Approves Two 2022 Fiscals
Today, the National Association of Insurance Commissioners (NAIC) announced two Fiscal Impact Statements related to the 2022 budget were approved by the NAIC Internal Administration (EX1) Subcommittee and the NAIC Executive (EX) Committee during a joint meeting held on June 21, 2022.
The approved fiscals are:
- Variable Annuity Model Office – This fiscal requests professional services to obtain a model office to perform reserve and capital scenario calculations for a representative portfolio of in-force variable annuity and registered-indexed linked annuity products, supporting assets, and hedging strategy. A model office is a portfolio of variable annuity insurance liabilities with a range of different underlying product features as well as a corresponding portfolio of supporting invested assets with a range of different investment characteristics; thus, it is modeled to produce a range of representative reserve and capital results. The model office would also facilitate independent analysis of scenarios and provide a point of comparison to assess individual Economic Scenario Generator (ESG) field test participant results for reasonableness.
- Catastrophe Modeling Center of Excellence – This fiscal requests funding to establish a Catastrophe Modeling Center of Excellence (Center) within the NAIC’s Center for Insurance Policy and Research and includes two NAIC headcount to staff the Center, as well as for travel, training, and data modeling expenses. The Center will provide state insurance regulators with access to knowledge, insights, and catastrophe modeling tools to better assess and address natural and man-made catastrophe risk and resiliency issues.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.