Mike Mead, CICA’s Advocacy Industry Expert, took part in the NAIC RRG Task Force call on May 2, 2013. The following is his report from the call.
- The first item was to pass on their recommendation about the reconciliation of notes in RRG financial statements. This has been agreed to several times but-surprise-it will be re-worked to “clarify” and be certain that no RRG is penalized in the mean time.
- The next item was to determine which parts of the Insurance Holding Company Act apply to RRGs. While it was agreed that not many RRGs would be affected the group went on to make sure that those who are so affected will have much more work to do.
- Next was a discussion of Enterprise Risk Management. . These are extensive reports to be filed by the Ultimate Controlling Parent of an insurer with no exceptions. These will apply to RRGs if they are subject to the Insurance Holding Company Act Model Regulations.
- Then we have ORSA. As it exempts insurers with less than $500,000,000 in annual premiums they felt that not many RRGs would qualify. Indeed no insurers qualify. But if they do so qualify they have to file a report.
- They closed with a memo to correct technical language in their manuals about reinsurance standards. It took some discussion but passed. So, RRG reinsurers approved prior to 1/1/11 are okay even if they no longer meet the manual standards.