What’s next for the rules that govern insurers’ investments: Developments from the NAIC’s 2023 Fall National Meeting

Synopsis:

This report reviews the 2023 NAIC Summer Meeting, which brought progress on several initiatives to revise guidelines with potentially far-reaching implications for insurers’ investment strategy and capital markets:

• Classification of investment vehicles, including debt and residual interest of structured products.
• Potential revisions to the designation process, which determines capital for debt instruments.
• Efforts to revise the capital framework to differentiate structured assets.

In addition, the Financial (E) Committee (E-Committee), whose working group’s mandate includes overseeing many of these initiatives, met to explore the Committee’s Framework for Regulation of Insurers Investments further. As a reminder, the Framework proposes a modernization of investment risk oversight, which is significant.

About the Authors

• Amnon Levy is the CEO of Bridgeway Analytics and led the redesign of the C-1 factors on behalf of the NAIC and ACLI in 2021
• Brett Manning is a Senior Predictive Analytics Specialist at Bridgeway Analytics
• Nitsa Einan is Bridgeway Analytics’ Chief Legal and Product officer
• Douglas Dwyer is a Senior Predictive Analytics Specialist at Bridgeway Analytics

Read the Full Report Here