Solvency Modernization Initiative SMI

What is the Solvency Modernization Initiative (SMI)?

The NAIC’s Solvency Modernization Initiative (SMI) began in June 2008. The SMI is a critical self-examination of the United States’ insurance solvency regulation framework and includes a review of international developments regarding insurance supervision, banking supervision, and international accounting standards and their potential use in U.S. insurance regulation. While the U.S. insurance solvency regulation is updated on a continuous basis, the SMI will focus on five key solvency areas: capital requirements, international accounting, insurance valuation, reinsurance, and group regulatory issues.

The project is being guided by the SMI Roadmap—a document describing in some detail, the policy direction and priorities agreed upon for the project. The Roadmap is critical to overall success of the project. The SMI requires coordination from a number of regulatory groups for successful completion of the overall initiative. It describes how the NAIC’s SMI (EX) Task Force will monitor the activities of these groups to assure a coordinated work product and to minimize the level of overlapping responsibilities.

The SMI will highlight the strengths of the state-based national system of insurance regulations and identify improvements that might be made. All work on the project is expected to be completed by year-end 2012.

For a Larger Overview, CLICK HERE for the SMI Roadmap (12/31/12)

SMI Related Task Forces, Working Groups and Subgroups

Solvency Modernization Initiative (EX) TF

C-1 Factor Review (E) Subgroup

Corporate Governance (E) Working Group

Group Solvency Issues (E) Working Group

International Solvency and Accounting (EX) Working Group

ORSA (E) Subgroup

Principles-Based Reserving (EX) Working Group

Solvency Modernization Initiative RBC (E) Subgroup

RBC Catastrophe Risk (E) Subgroup

Reinsurance (E) Task Force

2012 Updates

December 31, 2012	SMI Roadmap
August 31, 2012	News Release SMI Roadmap
March 29, 2012	News Release SMI Roadmap

2011

Dec 22, 2011	Document Adopted by Corporate Governance (E) Working Group Existing U.S. Corporate Governance Requirements
Nov. 30, 2011	News Release SMI Roadmap
June 10, 2011	ERM Symposium and Governance Interim Meeting July 20-21, 2011, Jacksonville, FL Registration is now closed. ERM Symposium Agenda/Material Corporate Governance (EX) Working Group Interim Meeting Agenda
May 20, 2011	News Release SMI Roadmap
Jan. 31, 2011	Summary of SMI Activity SMI Update
Jan. 5, 2011	Distinguished Scholar Study: Solvency II Calibration

2010

Aug. 17, 2010	News Release SMI Roadmap: A Timeline to Concrete Action
July 30, 2010	News Release NAIC Releases RFP to Retain Consulting Actuary for PBR Study
July 28, 2010	Summary of SMI Activity SMI Update - The Future of Risk-Based Capital Requirements
July 9, 2010	News Release NAIC Names New Distinguished Scholar
June 7, 2010	Letter from Director Christina Urias to Lou Felice, Chair of the Capital Adequacy (E) Task Force SMI's Risk-Based Capital (RBC) Proposals
June 3, 2010	News Release NAIC To Consider Impact Of Principles-Based Reserving
March 28, 2010	News Release Regulators Scout SMI "Road Map"
March 28, 2010	Podcast AUDIO (MP3): Solvency Modernization & Group Supervision (5.5MB , 12min.)
March 17, 2010	Summary of SMI Activity SMI Update - Commissioners and Financial Regulators Discuss Future Solvency Regulation

2009

Sept. 23, 2009	News Release NAIC Adopts Standard Valuation Model Legislation
July 14, 2009	News Release Insurance Regulation Focus of Academic Symposium: Discussion Will Center on Solvency Regulation Initiatives
June 13, 2009	News Release NAIC Names First Distinguished Scholar in Insurance Regulation
Oct. 17, 2009	News Release NAIC Supports Global Solvency Standards