The National Association of Insurance Commissioners says it's developing tools that will help member regulators do a better job of watching insurers.
The Kansas City, Missouri-based regulator group talks about the new tools in its 2021 annual report.
The group turned 150 in 2021, but the COVID-19 pandemic left it with no time to celebrate.
Instead, regulators and NAIC staff members raced to complete projects that could help regulators and insurers cope with the pandemic-related upheaval.
One team moved ahead with efforts to identify insurers that might be having trouble with getting the cash they need to pay claims.
That team ended up ended up identifying 23 liquidity risk stress test candidates. Those insurers are filing stress results for 2020, NAIC representatives say.
Another NAIC team developed an artificial intelligence-based strategy for identifying insurers at higher risk of financial problems. Regulators are using results from the AI risk analysis project to improve the NAIC Life Scoring System, and the scoring system changes should help improve life insurer solvency monitoring, the association says.
