Posted on 19 Aug 2010
At its Summer National Meeting in Seattle, the National Association of Insurance Commissioners' (NAIC) Solvency Modernization Initiative (SMI) Task Force released an updated SMI Roadmap. The document tracks the progress of the various NAIC working groups charged with solvency and financial regulatory concerns.
"This new version of the roadmap builds on the task force's considerable research on solvency structures from all over the world," said Christina Urias, Chair of the Solvency Modernization Initiative Task Force and Arizona Director of Insurance. "The roadmap now includes both short-term and long-term plans for putting this knowledge to use."
The SMI began in June 2008 as a critical self-examination of the U.S. insurance solvency regulation framework. The effort began with a review of international developments regarding insurance supervision, banking supervision, and international accounting standards and their potential use in U.S. insurance regulation. While U.S. insurance solvency regulation is updated on a continuous basis, the SMI focuses on five key areas:
- Capital requirements;
- Governance and risk management;
- Group supervision;
- Statutory accounting and financial reporting; and
Specific timelines with actions in key areas are now included. The Roadmap presents a list of deliverables including: further research; formulas and tools; and publications. The task force will develop model bulletins, guidance and/or laws to assist the states with implementation.