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Members Capital Markets Bureau Services | NAIC
Capital Markets Bureau Services
  1. Investment Analysis Reports

The Investment Analysis Report will actually consist of three primary components.

    1. Preliminary Assessment – staff from the Capital Markets Bureau will meet with the state insurance examiner and, if appropriate, with a representative of the insurer to discuss the overall construction of the investment portfolio and relevant information about the insurer's liability structure.  Following that, the staff will discuss with the state insurance examiner what areas of the insurer's investment portfolio will be the subject of detailed analysis.
    2. Analysis and Written Report – a written report is provided, focusing on issues that may be of concern, specifically on those factors that may increase volatility within the insurer's portfolio or which may have an impact on the insurer's solvency.
    3. Follow up Discussion – following delivery of the written report, staff will schedule a meeting with the state insurance examiner, to discuss findings from the analysis; potential issues and questions that should be addressed in greater detail with the insurer by the state; and any potential follow up that may be necessary depending on the insurer's responses to that feedback.

Cost: Minimum of $2,000.  The actual cost will depend on the amount of time required, along with any necessary expenses for data requirements.  Generally, it is anticipated that each assignment will require the dedicated efforts on one analyst along with a supervising manager.  The amount of analytical time required will range from three to ten days.  The actual amount of time and effort will be driven by the complexity of the insurer's portfolio.  Data requirements will be more a function of the overall size of the investment portfolio.  The majority of data costs are based on a specific charge per unique CUSIP.  The state will be provided with a detailed accounting of the relevant costs.  In 2011, the cost of Investment Analysis Reports will be capped at $10,000.

  1. Detailed Asset Reviews

Outside of the examination process and a full analysis of an insurer's investment portfolio, states can also request a detailed review of a specific asset class within an individual insurer's investment portfolio.  This review consists of both a quantitative and qualitative review of the individual components of that portion of the portfolio requested.

Cost: Cost of reviews will be based on actual time spent and data requirements.  Simpler, and less detailed, analysis is also available with the cost being only any out of pocket expenses necessary for acquiring data.

  1. Derivatives Use Plan Reviews

The Capital Markets Bureau is available to review submitted Derivatives Use Plans and provide support to state regulators in determining if the proposed plan sufficiently describes an appropriate infrastructure for the trading, monitoring and management of a portfolio of derivatives positions.

Cost: $2,500 to $5,000.  The actual cost of the review would depend on a number of factors.  (a) How complete the submitted plan is.  (b) How much back and forth may be required to resolve open questions.  (c) How complex the proposed derivatives use is.

  1. On-Site Examination Support

The Capital Markets Bureau is available for ongoing support in the examination process.  If requested, when appropriate, staff can attend meetings as support to state examiners in meetings with investment personnel of insurers.  Staff is also available to follow up with additional analysis on the investment portfolio or any portion of the investment portfolio as a follow up to the examination.

Cost: Cost will be determined based on time spent and out of pocket expenses, including relevant travel.

  1. On-Site Investment Seminars/Training

The Capital Markets Bureau is available to provide seminars and training on analyzing the investment portfolios of insurers, as well as more detailed training on specific asset classes.  This is coordinated with the NAIC's Education and Training Department.

Contact

Capital Markets Bureau
One New York Plaza 
Suite 4210
New York, NY 10004 
Phone: 212-398-9000
Fax: 212-382-4204