NAIC Discusses Changing Financial Landscape in Insurance During Eurofi Financial Forum
In September, Louisiana Insurance Commissioner and NAIC International Insurance Relations (G) Committee Vice Chair Tim Temple joined industry leaders and regulators on the “Insurance in a Polycrisis World” panel at the Eurofi Financial Forum.
Among other topics, Commissioner Temple discussed actions that U.S. state insurance regulators, supported by the NAIC, are taking to address the changing financial landscape in the insurance industry, including the rise of asset intensive reinsurance (AIR). He noted that while new investment models, including AIR, are not inherently dangerous, the challenge for regulators is to ensure any financial risks are genuinely transferred and adequately capitalized.
Commissioner Temple cited state regulators’ work on the Risk-Based Capital Modernization Project, as well as Actuarial Guideline 55, which requires enhanced asset-adequacy testing for certain offshore life and annuity reinsurance transactions, as steps regulators are taking to generate more transparency around these transactions. He also discussed the expectations for sound risk management in the use of artificial intelligence.
Ahead of the conference, Commissioner Temple contributed an article on financial regulation to Views, the Eurofi Magazine, which can be found here.
On the sidelines of the event, Commissioner Temple met with consumer organizations, industry leaders, and regulators on a number of topics affecting the industry across borders, including natural catastrophe resiliency and financial stability.
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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. State insurance regulators, through the NAIC, 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.