The NAIC has begun the initial steps to develop a model law that would define how state regulators collect information on insurers’ corporate governance practices. This model law would apply to all insurers, including captives.
The model law likely will be drafted by the NAIC’s Corporate Governance Working Group. The model law would define what information state regulators can collect from insurers in between the regulators’ examinations of the insurance companies. It would also ensure that the insurers’ confidential data collected by regulators is kept confidential.
According to the NAIC, “The development of an ‘Annual Reporting of Corporate Governance Practices of Insurers Model Act’ would provide a means for regulators to get a better understanding of the governance practices of their domestic insurers. The development of this model law would also ensure the confidentiality of governance information collected from insurers and assist U.S. regulators in achieving greater consistency with international standards. As part of the model law development process, the Working Group would identify overlapping or redundant requests for corporate governance information that can be removed from other areas of the regulatory process.”
This model law is still being developed by the NAIC so details of how the law would impact insurers are not yet clear. The ABIA will continue to provide updates as we learn more.
If you would like to learn more about this and other issues impacting captive insurers, please contact us to join the ABIA's Captives Insurers Working Group.
Learn more about the model law from the NAIC (refer to Attachment 2 of the Agenda).