Amidst detractors noting a possible conflict of interest, the National Association of Insurance Commissioners (NAIC) released a discussion draft outlining the economic assumptions regulators will use to evaluate residential mortgage backed securities (RMBS). The document is available on the Valuation of Securities Task Force page of the NAIC Web site.

On November 17, the NAIC selected bond-fund company Pacific Investment Management Co. (PIMCO) as a third-party financial modeler to assist state regulators as they establish a new guidelines based on methodology that will ultimately determine the risk-based capital (RBC) requirements for more than 18,000 RMBS securities owned by U.S. insurers at the end of 2009. Previously, the NAIC relied on rating-agency ratings in its capital guidelines.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access