The Solvency Modernization Initiative (E) Task Force – Group Solvency Issues Working Group met on Sunday morning at the 2013 Summer Meeting of the National Association of Insurance Commissioners (NAIC) in Indianapolis, to discuss the status of the discussions with the International Association of Insurance Supervisors (IAIS) and the Financial Stability Board (FSB).
- The first item of discussion was the update on the IAIS and the Cross Sectional Initiative. It appears that there is concern expressed by the regulators and the Interested Persons who spoke about the role of the FSB. It appears that the FSB could be dictating items to the IAIS and that the actions of the FSB might be creating problems dealing with Group Supervision. For instance, how can US State A control what US State B does with its companies?
- It is clear that ICP 23 needs to be worked on and coordinated with Conframe, the IAIS and the NAIC.
- Also the question was posed by the Interested Parties concerning the reconciling of the regulators’ actions with McCarran Ferguson. This was acknowledged by the regulators as very serious and it has been raised by the NAIC with the IAIS. However, to date, there has been no resolution or full discussion. In fact, Rob Esson of the NAIC stated that he believed the IAIS has been intentionally ducking the matter.
- There was considerable discussion about the Roles and Responsibilities Document and specifically the sample confidentiality agreement. It was acknowledged that confidentiality is a serious concern. Because of the wording issues of the sample confidentiality agreement, it was decided to remove it from the draft document. The document itself was referred to the Financial Analysis Working Group for review and comment.
Materials from the meeting can be found here.