The NAIC's International Insurance Relations (G) Committee (the "Committee"), chaired by Commissioner Kevin McCarty (Florida) met on Friday, March 26, 2010, during the NAIC Spring National Meeting. The Committee received an update on International Strategy and Action Plans and discussed International Association of Insurance Supervisors ("IAIS") strategic planning, including the Common Framework or Supervision of Internationally Active Insurance Groups ("Common Framework").
The Committee received reports from its International Regulatory Cooperation Working Group and from the Solvency Modernization Initiative Task Force.
The Committee also heard from Yoshi Kawai, Secretary General of the IAIS, who spoke about the IAIS's new Financial Stability Committee and the Common Framework.
Dr. Ray Spudeck (Florida) reported on the work of the Joint Forum (established in 1996 under the aegis of the Basel Committee on Banking Supervision ("BCBS"), the International Organization of Securities Commissions ("IOSCO") and the IAIS. The Joint Forum released a Report on the Differentiated Nature and Scope of Financial Regulation in January 2010 and is looking at diversification and risk modelling. The Joint Forum is also looking at an update of its 1999 Paper on Risk Concentrations in Financial Conglomerates.
The Committee also heard that the NAIC had submitted comments to the Committee of European Insurance and Occupational Pensions Supervisors in relation to its consultation paper CP 78 (Draft Level 2 Advice on Technical Criteria for assessing 3rd country equivalence). A copy of the consultation and the NAIC's comments can be found by clicking here. The comments emphasise the NAIC's view that equivalence should be measured on an outcomes-based approach.