International Insurance Relations (G) Committee

The following task forces and working groups report to the International Insurance Relations (G) Committee:

• International Regulatory Cooperation (G) Working Group

2012 Charges

The mission of the International Insurance Relations (G) Committee is to strengthen the international insurance regulatory system and provide a forum for cooperative efforts between the NAIC, international regulators, and multi-national associations of regulators on issues of mutual interest. The Committee also provides support to the federal government, including the Federal Insurance Office (FIO), in insurance related international trade issues.

Ongoing Support of NAIC Programs, Products, or Services:

1. Develop NAIC policy and participate in the work of the International Association of Insurance Supervisors (IAIS) by attending relevant committee, subcommittee and task force meetings. Enhance transparency at the IAIS and facilitate the drafting and commenting on papers that hold a common topical interest, including solvency, accounting, reinsurance, group supervision, market conduct, corporate governance and other aspects of regulation of the business of insurance. Also, attend the IAIS Annual Conference and interim meetings and present relevant topics at regional training programs.—Essential

2. Participate in the Joint Forum and monitor and contribute, where appropriate, to the Financial Stability Board (FSB) and G-20 by coordinating with U.S. financial regulators and by attending meetings to represent the views of U.S. insurance regulators in discussions of issues of significance to insurance commissioners, and by developing NAIC policy and commenting on guidance and principles papers of common interest.—Essential

3. Appoint the International Regulatory Cooperation (G) Working Group to strengthen international regulatory systems by interacting with international regulators; reviewing proposed laws and regulations for insurance supervisors in countries changing their regulatory structure and those with emerging economies; conducting an International Fellows Program and educational (technical assistance) seminars to provide an understanding of the U.S. system of regulation; and establishing fellowship opportunities between U.S. and foreign insurance regulatory bodies. In furtherance of this objective, regularly consult with insurance supervisors from other jurisdictions. Communicate regularly and establish working relationships with the U.S. government, the private sector and international organizations to coordinate efforts whenever possible to provide more efficient and effective technical assistance.—Essential

4. Continue to monitor the insurance aspects associated with the North American Free Trade Agreement (NAFTA) and the Security and Prosperity Partnership (SPP). Work to enhance the availability and affordability of cross-border motor carrier insurance, including trucking, personal auto and bus, and the associated topics of health and workers’ compensation insurance, and related legal developments. Coordinate state efforts to meeting U.S. trade objectives through coordination between the NAFTA Trilateral Insurance Working Group and the NAFTA Financial Services Committee; and through insurance training programs and ongoing research of the laws and regulations of Canada, Mexico and the U.S., work toward increased harmonization and uniformity and the creation of a seamless market.—Essential

5. Monitor trading partners discussions by the Office of the United States Trade Representative (USTR) officials regarding multi-lateral trade agreements through the World Trade Organization (WTO)—including the General Agreement on Trade in Services (GATS)—and regional and bilateral trade negotiations by participating in the dialogues and information exchange; attending meetings with appropriate federal representatives; and reviewing and commenting on documents generated through trade discussions. Timetable is dependent on federal government, but an update will be provided at each national meeting. Also, assist USTR, Department of Commerce, Treasury Department (including the FIO) and other U.S. officials, as requested, by responding to requests for information; and engage in implementation efforts under existing trade agreements. Review the remaining GATS reservations in light of regulatory modernization efforts to assist USTR with fruitful negotiations.—Essential

6. Participate in the Organization for Economic Cooperation and Development (OECD) Insurance and Private Pensions Committee and subcommittee meetings, held in summer and winter at the invitation of the U.S. government, by attending meetings, drafting and commenting on insurance-related papers, acting as a coordinating body in the completion of statistical questionnaires, and presenting the U.S. system of insurance regulation.—Essential

7. Maintain regular prudential dialogues with non-U.S. insurance supervisors to address issues of mutual concern and to educate each other about our regulatory systems; discuss domestic regulatory issues; coordinate involvement in international forums, such as IAIS, OECD, Joint Forum and FSB; explore ways of achieving convergence of insurance supervision; and facilitate exchange of information among regulators to enhance domestic regulation.—Essential

8. Continue to develop a comprehensive response to and coordinate appropriate follow-up on the recommendations in the Financial Sector Assessment Program (FSAP) Detailed Assessment Report, including referral of specific issues for consideration by other NAIC working parties.—Essential
   
   NAIC Support Staff: Eric Thompson