Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) is taking steps to amend disclosure requirements for insurers that use reinsurance with limited risk transfer features, also known as finite reinsurance. The use of so-called finite reinsurance has received considerable attention over the past several months, because of its misuse by some high-profile insurers. State insurance regulators, working in a coordinated fashion through the NAIC, have been evaluating existing relevant statutory financial reporting since last fall. The latest proposed disclosures would require an insurer to report to state insurance regulators any agreement that has the effect of altering policyholders' surplus by more than 3%, or representing more than 3% of premium or losses. The new disclosure is also designed to identify any reinsurance contract that has been accounted for differently under statutory accounting principles compared to general financial statement purposes. Additional reporting requirements regarding contract terms and management's intention in entering the contract have been included to improve transparency. The provisions include that there are no separate agreements between the insurer and the reinsurer that could serve to modify the actual or potential losses under the contract, and that the insurer complies with all requirements of NAIC's statement of statutory accounting principle (SSAP) No. 62, "Property and Casualty Reinsurance."Source: NAIC
-
By collaborating, cybersecurity professionals and insurance providers can share insights, best practices, and trends in cyberthreats, creating a more secure environment for all.
8h agoKnowBe4 -
The insurtech development program, seeing frequent participation from Americas-based startups, dedicates latest cohort to regional entries.
9h ago -
AI has great risks for underwriters but also great potential benefits, according to Randy Paez, chief financial officer of Ambac. Paez spoke with Digital Insurance about how to leverage data and integrate AI into insurance operations.
9h ago -
The top five insurance companies have an average P&C market share of 6.50% as of December 31, 2023.
April 23 -
Lloyd's appointed Dawn Miller as chief commercial officer, and CEO of Lloyd's Americas; plus more career moves.
April 22 -
Greater exposure to climate risks is driving an increase in insurance premiums and decrease in insurance availability.
April 22