Compiling...

NAIC Selects Conning to Provide Economic Scenario Generator Services for the U.S. Life Insurance Industry

Conning Image

KANSAS CITY, Mo (October 1, 2020) –The  National Association of Insurance Commissioners (NAIC) recently selected Conning, Inc. to provide Economic Scenario Generator (ESG) services.

On March 4, 2020, the NAIC issued Request for Proposal #2053, soliciting proposals from vendors to provide, maintain, and support an ESG that produces real-world, interest and equity scenarios to be prescribed for use in calculations of life and annuity statutory reserves according to the Valuation Manual (e.g., VM-20, VM-21) and capital under the NAIC RBC Requirements (e.g., C3 Phase 1, C3 Phase 2). NAIC received six proposals and selected Conning.

Conning’s ESG tool uses advanced modeling and estimation technology to produce empirically validated, realistic economic behavior, and its financial models are among the industry’s most technologically advanced.

The NAIC looks forward to working with Conning in the near future to begin work on the ESG with the NAIC’s Life Actuarial (A) Task Force and Life Risk-Based Capital (E) Working Group to implement the ESG for regulatory purposes.

About the NAIC

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. For more information, visit www.naic.org.

Related Content