WASHINGTON, D.C. (PRWEB) December 07, 2016
The American Insurance Association (AIA) will advocate at the National Association of Insurance Commissioner’s Fall 2016 National Meeting for the Big Data (D) Working Group to take a balanced approach in its examination of usage of data. AIA will also be presenting on the development of a group capital calculation tool by the NAIC Group Capital Calculation Working Group and participating in a discussion during the NAIC/Industry Liaison Meeting on work products that are incorporated by reference into state law. The NAIC Fall 2016 National Meeting will be held on December 10-13 in Miami, Florida.
The Big Data (D) Working Group will discuss its charges and work stream for 2017. “For next year, we would encourage Working Group members to examine how data can be used to foster innovation while protecting consumers’ privacy. Insurers use data to understand and manage risks and it is essential to use this technology in a way that benefits both consumers and the industry. We look forward to the dialogue at the NAIC Center for Insurance Policy and Research (CIPR) forum which will cover many of the same themes, including regulatory efforts to encourage innovation.” said Adam Kerns, AIA assistant general counsel.
On December 10, The Group Capital Calculation (E) Working Group (GCCWG) will continue its discussions on the development of a group capital calculation tool. AIA remains engaged with the Working Group and NAIC leadership to ensure that any group capital calculation will not conflict with capital assessment approaches that are being developed by the Federal Reserve Board and the International Association of Insurance Supervisors. AIA supports an aggregation and calibration (A&C) approach for the group capital calculation tool -- and this approach is reflected in the GCCWG’s inventory method proposal. Regarding this proposal, AIA will comment on two NAIC suggestions for scaling capital requirements from different solvency regimes. The purpose of scalars is to address compatibility across jurisdictions. The treatment of non-insurance entities within a related group of insurance companies will also be discussed with the GCCWG.
“We look forward to having a fuller discussion with the Working Group on several unanswered questions regarding its approach to a group capital calculation, such as the scope of the entities that should be included within the calculation,” said Phillip Carson, AIA associate general counsel and director of financial regulatory policy.
During the December 12 NAIC/Industry Liaison Meeting, AIA will participate in a discussion regarding NAIC work products that are incorporated by reference into state law. Our comments will convey support for additional procedural protections to enhance the credibility of policy decisions as NAIC work products like these assume a larger role in NAIC’s modernization efforts. The presentation will be a follow-up to AIA’s comment letter to the Governance (Ex) Task Force, making the case that additional administrative due process procedures are needed.
“AIA will advocate that NAIC processes for adoption and modification of its handbooks and manuals should be more closely aligned with state Administrative Procedures Act requirements,” said Kerns. “Additionally, we’ll present suggestions for such procedures. These suggestions aim to protect the current environment of collaboration among all stakeholders.”