The latest proposal of the National Association of Insurance Commissioners Catastrophe Insurance Working Group will garner much attention as will the effort to draft the Insurers Receivership Model Act at the March 4 to 7 NAIC Spring Meeting in Orlando, Fla. according to the Property Casualty Insurers Association of America.
The NAIC Catastrophe Insurance Working Group will continue to work toward reaching consensus on a mega-catastrophe proposal. The proposal has been the subject of several lengthy discussions since the NAIC’s Winter Meeting and a revised draft is expected to be presented at the Spring Meeting.
“We are encouraged that the NAIC is taking a serious look at this issue,” Donald Griffin, PCI vice president of commercial lines explained. We’re optimistic that the NAIC will develop a plan that will work for consumers and insurers. This is the right time to explore how the nation finances catastrophic risk. But early versions of the proposal have contained a variety of mandates that raise some concerns. While we are waiting to see what the latest draft has to offer, PCI certainly can support measures that will enhance free markets, promote loss prevention, minimize cross subsidies and support sound underwriting and rating.”
During the meeting, the Receivership Model Act Revisions Working Group will continue drafting the Guaranty Association Model Act. The Reinsurance Task Force will develop a proposal for collateral reduction for alien reinsurers. The Receivership Law and Intergovernmental Working Group will consider which elements of the Insurers Receivership Model Act should be included as elements of the accreditation program. PCI and others in the industry have repeatedly voiced their concerns regarding this effort.
There are two new working groups that will meet at the Orlando meeting. The International Solvency Initiatives Working Group will work with the International Association of Insurance Supervisors Solvency and Actuarial Issues Subcommittee to develop international solvency regulation standards.
In addition, the Uninsured Motorist Issues Working Group will be discussing the feasibility of auto insurers reporting auto insurance data to the NAIC in an effort to promote a reduction in uninsured motorist populations throughout the country.
Other key issues on PCI’s agenda include speed to market and a variety of international issues.
Topics Catastrophe
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