We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • At NAIC Meeting, Insurance Companies, Groups Call for Flexibility in Global Capital Standard

    August 17, 2014 by Thomas Harman

    LOUISVILLE, Ky. – Major U.S. insurance companies and trade groups want more flexibility in the development of a capital standard, with one company going so far as to propose a U.S. national standard as an alternative to proposals made by international groups.

    The concerns were addressed at the National Association of Insurance Commissioners’ Summer National Meeting during a special NAIC International Capital Standards Forum.

    The concerns stem from the moves by the International Association of Insurance Supervisors’ to develop the Common Framework for the Supervision of Internationally Active Insurance Groups as a framework for such groups’ supervision. The IAIS is proposing a risk-based global insurance capital standard for the insurance groups as part of ComFrame.

    The IAIS has been accepting public comment period on proposed basic capital requirements that currently would apply to the nine global systemically important insurers, with a final version of the plan to be released in November. That is to be the first of a three-part process to ultimately end up with risk-based group-wide global capital standards. The second step is development of the higher loss absorbency requirements for GSIIs, due some time in 2015. The full standard is scheduled to be completed by the end of 2016 with application to begin in 2019 (Best’s News Service, July 9, 2014).

    At the forum, calls were made by individual insurers and trade groups for more flexibility in any standard than what the IAIS is currently proposing.

    Joe Sieverling, senior vice president and director of financial services at the Reinsurance Association of America, told the panel the IAIS plan provides a too-strict comparability across jurisdictions with financial stability applied to systemically important entities as the goal. The result, he told Best’s News Service, would be a regime that would be very costly. A much more general approach is necessary, he said. “If the IAIS is willing to do this, I think the world could converge around a more flexible [international capital standard],” he said.

    Jeffery Alton, vice president of financial regulation and capital analysis at CNA Financial, called for creation of a national capital standard that would impact U.S. companies only and have separate approaches for life insurance and all non-life insurance.

    Alton called on the NAIC and the federal agencies involved in discussions to work toward a consistent national message when discussing the development of the global capital standard. “I think for us to be effective, we’ve got to have something that we can all advocate,” he said.

    Pooja Rahman, a vice president at the New York Life Insurance Co., said the international capital standard as proposed would create a less-stable financial system. She said the IAIS’ focus on attempting to provide financial stability by ensuring adequate capital is on hand is misguided. “The solution implies that there was a problem in the financial crisis caused by inadequate capital,” she said. “We don’t agree.”

    Michelle Rogers, director of financial and regulatory policy with the National Association of Mutual Insurance Companies, told the panel the standard would restrict the capital available and create hardship when the capital is needed.

    Nicole Allen, a senior vice president and state regulatory officer at Swiss Re, said while her company believes a global capital standard is coming, it must fit the systems used in all nations. “I’m not suggesting there will be any favored regulatory system,” she said. “The [international capital standard] should be designed to work with all systems.” Furthermore, she said there would be no overthrow of the U.S. state-based system. However, any standard developed should not contain a requirement that companies should have to add more capital.

    Liz Brill of the American Academy of Actuaries told the panel the regulatory and accounting differences between the IAIS plan and what is done domestically make any global standard a challenge. “At the end of the day, it’s important to remember that no approach is perfect,” she said.

    NAIC Vice President Michael Consedine said he wanted the forum to be first of a series of discussions on the topic. “We need a plan and we need a voice at the table that’s heard loud and clear,” he said. “This is a good opportunity to work with the [Federal Reserve] and the [Federal Insurance Office] to come up with an appropriate plan.” He said there is already a wealth of good ideas on the table. “It’s just a question of us coordinating the work that we’ve already done,” he said.

     

    Originally Posted at A.M. Best on August 17, 2013 by Thomas Harman.

    Categories: Industry Articles
    currency