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NAIC defends state-led insurance oversight in reply to Warren
The NAIC said it is adopting a more refined definition for bonds and will be able to challenge private ratings, alongside expanded transparency and reporting for private investments.
The National Association of Insurance Commissioners defended its state-led insurance regulatory approach in a letter responding to US Senator Elizabeth Warren’s concerns about potential oversight gaps tied to insurers’ dealings with Wall Street, according to Insurance Journal.
NAIC said it is modernizing tools to improve oversight of life insurers’ investments and solvency, including a more refined definition for bonds, increased transparency, and reporting requirements focused on private investments.
The group also said it can challenge private ratings when it deems it necessary, and it argued that the updates do not indicate an “insurance regulatory vacuum,” saying the state-based system adapts prudential standards as markets evolve.