Financial Condition Committee - (E) - NAIC

  • 2003-3, NAIC Proc. - Financial Stability Task Force  
    • 2003 0610 - Report of the National Association of Insurance Commissioners (NAIC) and the Federal Reserve System - Joint Subgroup on Financial Issues - 51p
  • (p536) - The Subgroup also found that the remaining Federal Reserve risk categories for banking organizations – liquidity, operational, legal and reputational – encompass similar underlying concepts of risks associated with insurance operations, but that such risks are viewed somewhat differently in the context of the organization and management of the business operations of banks and insurance companies.
  • From the array of risks identified, however, the Subgroup determined that some insurance risks were exclusive to particular insurance products and were therefore not comparable to banking risks.
  • (p537) - 1. Mapping of Life Insurance Company Risks

2003-3, NAIC Proceedings - Financial Condition (E) Committee 

  • 2021 1216 - EX - NAIC - Executive (EX) Committee and Plenary - Attachment Eighteen - 
    • 2021 0222 - MEMORANDUM - To: Financial Condition (E) Committee - From: Financial Stability (E) Task Force - Re: 2020 Revisions to Insurance Holding Company System Regulatory Act (#440)
      • These revisions implemented a Group Capital Calculation (GCC) for the purpose of group solvency supervision and Liquidity Stress Test (LST) for macroprudential surveillance.
        • This memorandum makes recommendations with respect to the accreditation standards that this Task Force believes is appropriate with respect to only the LST and expect the Group Capital Calculation (E) Working Group to make separate recommendations to the Committee with respect to the GCC.
      • In order to provide more evidence-based analyses, the Task Force decided to develop a LST for large life insurers that would aim to capture the impact on the broader financial markets of aggregate asset sales under a liquidity stress event. Unlike capital adequacy, which has risk-based capital as a standardized legal entity capital assessment tool and the newly created Group Capital Calculation to provide a capital analysis tool at the group level, there is no regulatory liquidity assessment or stress tool. The Task Force focused on large life insurers due to the long-term cash buildup involved in many life insurance contracts and the potential for large scale liquidation of assets, not because liquidity risk does not exist in other insurance segments. Thus, the primary goal of the LST is to provide quantitative as well as qualitative insights for macroprudential surveillance, such as identifying the amount of asset sales that could occur during a specific stress scenario; but it will also aid micro prudential regulation as well. Because this stress testing is complex and resource-intensive, a set of scope criteria were developed to identify life insurers with large balances of activities assumed to be highly correlated with liquidity risk; thus, many life insurers will not be subject to the LST.
FINANCIAL CONDITION (E) COMMITTEE
  • Financial Condition (E) Committee
  • Accounting Practices and Procedures (E) Task Force
  • Blanks (E) Working Group
  • Statutory Accounting Principles (E) Working Group
  • Capital Adequacy (E) Task Force
  • Health Risk-Based Capital (E) Working Group
  • Investment Risk-Based Capital (E) Working Group (disbanded)
  • Life Risk-Based Capital (E) Working Group
  • Longevity Risk (E/A) Subgroup
  • Variable Annuities Capital and Reserve (E/A) Subgroup
  • Property and Casualty Risk-Based Capital (E) Working Group
  • Catastrophe Risk (E) Subgroup
  • Examination Oversight (E) Task Force
  • Electronic Workpaper (E) Working Group
  • Financial Analysis Solvency Tools (E) Working Group
  • Financial Examiners Coordination (E) Working Group
  • Financial Examiners Handbook (E) Technical Group
  • Information Technology (IT) Examination (E) Working Group
  • Financial Analysis (E) Working Group
  • Financial Stability (E) Task Force
  • Liquidity Assessment (E) Subgroup
  • Group Capital Calculation (E) Working Group
  • Group Solvency Issues (E) Working Group
  • Own Risk and Solvency Assessment (ORSA) Implementation (E) Subgroup
  • Mortgage Guaranty Insurance (E) Working Group
  • NAIC/American Institute of Certified Public Accountants (AICPA) (E) Working Group
  • National Treatment and Coordination (E) Working Group
  • Biographical Third-Party Review (E) Subgroup
  • Receivership and Insolvency (E) Task Force
  • Receivership Financial Analysis (E) Working Group
  • Receivership Large Deductible Workers' Compensation (E) Working Group (disbanded)
  • Receivership Law (E) Working Group
  • Reinsurance (E) Task Force
  • Qualified Jurisdiction (E) Working Group
  • Reinsurance Financial Analysis (E) Working Group
  • Restructuring Mechanisms (E) Working Group
  • Restructuring Mechanisms (E) Subgroup
  • Risk-Focused Surveillance (E) Working Group
  • Risk Retention Group (E) Task Force
  • Valuation Analysis (E) Working Group
  • Valuation of Securities (E) Task Force