Solvency Modernization Initiatives (EX) Task Force
Solvency Modernization Initiatives (EX) Task Force Page
Executive (EX) Committee Task Forces and Working Groups Summary Report
Winter 2009 Meeting Summaries Index

The Solvency Modernization Initiative (EX) Task Force met Dec. 7, 2009. During this meeting, the Task Force:

• Noted that numerous Solvency Modernization Initiative (SMI) documents were released for comment.
• The International Solvency (EX) Working Group released two documents for comment, with comments due by March 1, 2010:
• Consultation paper on capital requirements and high-level accounting/valuation issues.
• Consultation paper on corporate governance and risk management.

The Working Group will have an interim meeting (tentatively) March 11–12, 2010, in Phoenix to discuss comments received on these documents.

• The Group Solvency Issues (EX) Working Group released numerous documents for comment, with comments due by Jan. 15, 2010, for the International Association of Insurance Supervisors (IAIS) paper and Jan. 29, 2010, for the other papers:
• Insurance Holding Company System Model Act (#440)
• Insurance Holding Company System Model Regulation (#450)
• Holding Company Best Practices
• Draft Memorandum discussing the concept and perspectives on group-wide supervision
• IAIS Draft Guidance Paper on Treatment of Non-Regulated Entities in Group-wide Supervision
• The Financial Condition (E) Committee released a draft with comments due Dec. 17, 2009:
•  The United States Insurance Financial Solvency Framework describes the current U.S. solvency framework and principles.

Once the Committee adopts this document, the Task Force will discuss whether changes are needed to the framework and principles going forward in the SMI.

• Discussed the plan for NAIC leadership to determine the mechanism for consideration of the future of statutory accounting, including whether to continue to maintain codified statutory accounting or to utilize public accounting (International Financial Reporting Standards or U.S. General Purpose Financial Reporting) and add a secondary structure for regulatory adjustments.
• Heard a report on the IAIS governance activities, which include development of governance principles (on licensing, risk management, internal controls, external audit, and fit and proper standards) and discussion about remuneration.
• Heard a report on the Center for Insurance Policy and Research’s (CIPR) Systemic Risk Panel held Dec. 3.
• Adopted the reports of the following working groups:
• Principles-Based Reserving
• Group Solvency Issues
• International Accounting Standards
• International Solvency