On April 1, 2013, the National Association of Insurance Commissioners (NAIC) issued its draft White Paper entitled The U.S. National State-Based System of Insurance Financial Regulation and the Solvency Modernization Initiative (the “Paper”). Broadly, the purpose of the Paper is to provide international regulators with a description of how the U.S. system of regulation works. More specifically, the Paper attempts to perform a critical self-evaluation to improve the insurance solvency regulatory framework in the U.S. and includes a review of international developments and potential options for use in U.S. insurance supervision. In addition, the Paper discusses the strengths of the state-based system of insurance regulation and improvements made over the last several years in connection with the Solvency Modernization Initiative, which started in 2008.
Interested parties should review the Paper and provide their comments to the NAIC by June 6, 2013. Click here to read more directly from the NAIC’s website, including a copy of the Paper.