As the NAIC gears up for its Summer National Meeting in August, some of the groups held virtual meetings in lieu of in-person national meetings. Groups that take this approach hold meetings prior to the National Meeting so their minutes can be adopted by parent groups and included in the National Meeting minutes. Meeting summaries are below.
During July, the NAIC also took an unusual step in providing a free educational offering. (The “free” part is unusual.) Beginning in July and occurring through the end of 2024, the NAIC is offering a seven-part series entitled “Principles-Based Bond Project Training.” As one might guess from the title, the goal of this course is to provide guidance for implementing the new principles-based bond accounting and reporting that will be effective January 1, 2025. The sessions begin on Monday of each week, with the participants having a week to complete the course. The modules allow attendees to start/stop throughout the week. (This training does not qualify for CPE credits.) Participants must sign up in advance of the session they want to attend. After 2024, there will be a fee for taking the course.
In addition, the NAIC has posted all adopted documents from the Bond Project that will be effective January 1, 2025 to the webpage of the Statutory Accounting Principles Working Group (SAPWG). These documents can be downloaded and include:
- Statement of Statutory Accounting Principles (SSAP) No. 26 – Bonds
- SSAP No. 43 – Asset-Backed Securities
- Other SSAPs Impacted by Bond Definition
- SSAP No. 21R – Other Admitted Assets
- Schedule D-1 Reporting Changes (2023-06BWG Modified)
- Other Investment Schedule Updates (2023-07BWG Modified)
- Schedule BA Reporting Changes (2023-12BWG Modified)
Rumor has it that SAPWG is developing a Q&A document to help address transition questions for the new bond reporting. Nothing has been released for comment at this time, but the hope is that might happen at the upcoming National Meeting. After all, the first quarter of 2025 is quickly approaching and everyone needs all the help they can find.
Reinsurance Task Force – July 22, 2024
The Task Force held this meeting in lieu of meeting at the upcoming NAIC Summer National Meeting. The meeting was mostly a standard housekeeping session, with the Task Force adopting its 2025 charges, a report of the Reinsurance Financial Analysis Working Group, and hearing a status report on the reinsurance activities of the Mutual Recognition of Jurisdictions Working Group. The group then discussed ongoing NAIC projects that affect reinsurance. In particular, the discussion focused on a referral from SAPWG regarding items it had exposed for comment on life reinsurance. No action was taken on the referral during the meeting.
Health Risk-Based Capital (RBC) Working Group – July 25, 2024
The Working Group adopted the content of the 2024 Health RBC Newsletter, which will be posted to its webpage in September. The 2023 Health RBC statistics were reviewed, briefly discussed, and then adopted. The statistics also will be posted on the group’s webpage. The American Academy of Actuaries (Academy) provided an update on its review of the H-2 underwriting risk. Earlier, the Working Group sent a referral letter regarding pandemic risk to the Financial Analysis Solvency Tools Working Group and the Financial Examiners Handbook Technical Group. After further deliberation, the Working Group decided during this meeting that the referral also should be sent to the Risk-Focused Surveillance Working Group. The working agenda for next year’s goals was adopted and the group announced it will not be meeting during the upcoming NAIC National Meeting.
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