Vaughan Takes Reins of International Regulatory Joint Forum

The solvency modernization initiative is underway, with new proposals expected on financial reporting.  

The NAIC's Financial Condition Committee is weighing critical issues in a manual that will be used to implement the proposed Own Risk and Solvency Assessment (ORSA) requirement for insurance holding companies while the IAIS's 'ComFrame,' a lengthy document developed by the IAIS in Basel, and other aspects of Solvency II, the European Union insurer solvency and risk management standards framework are debated internationally and viewed with a wary eye by many state regulators and industry professionals.

The American Council of Life Insurers believes that the NAIC's development of ORSA is moving in a positive direction, "as evidenced by the approval of the ORSA Guidance Manual by the NAIC Solvency Modernization Initiative Task Force, the proposed ORSA Pilot Project, and recognition that the ORSA will continue to evolve over time," the association stated back in the fall.  

Going forward, however, the ACLI, like other industry trades, is concerned about protecting confidential information and a "realistic timeline for implementation." The Property Casualty Insurers Association of America officials weighed in early with similar concerns.