Property and Casualtly Reinsurance Study Group
Financial Condition (E) Committee
Accounting Practices and Procedures Task Force

The Property and Casualty Reinsurance Study Group will:

Evaluate on an ongoing basis all issues and questions related to the accounting for or annual statement reporting of reinsurance transactions which may affect SSAP No. 62 or other portions of the Accounting Practices and Procedures Manual, and make appropriate recommendations to the Accounting Practices and Procedures (E) Task Force; and

Monitor on an ongoing basis the development of “alternative risk transfer mechanisms” and consider whether broader annual statement disclosure may be appropriate.

2008 Charges

1. Evaluate on an ongoing basis, all issues and questions related to the accounting for or annual statement reporting of reinsurance transactions that might affect SSAP No. 62, SSAP No. 75 or other portions of the Accounting Practices and Procedures Manual, and make appropriate recommendations to the Accounting Practices and Procedures (E) Task Force; and
2. Monitor on an ongoing basis the development of “alternative risk transfer mechanisms” and consider whether broader annual statement disclosure may be appropriate. In addition, monitor the Financial Accounting Standard Boards review of risk transfer and consider the need for further action by the NAIC.
3. Discuss potential additional regulatory disclosure requirements and possible changes to statutory accounting guidance of finite reinsurance transactions due to enhanced scrutiny focused on these transactions. Consider possible revisions to solvency monitoring practices or model laws.