2018年-普华永道全球_NAIC_2018_Summer_National_Meeting_PwC_23页_719kb

PwC NAIC Newsletter Summary - August 2018

Core Content Overview

The August 2018 issue of the PwC NAIC Newsletter highlights various activities and updates from the National Association of Insurance Commissioners (NAIC) committees, task forces, and working groups that met during the Summer National Meeting in Boston. Key topics include regulatory and statutory updates, cybersecurity initiatives, innovation and technology, and financial stability considerations.

Main Committees and Working Groups

Executive Committee and Plenary

• Adopted three technology-related fiscal impact statements as part of the NAIC State Ahead strategic plan:
  • Enterprise Data Strategy, Governance, and Management
  • Enterprise Data Platform and Data Warehouse
  • Dynamic Content Website
• The goals of these data projects are to improve analytics for regulators, ensure data consistency, and create a standardized online experience for state insurance regulators, consumers, and industry.

Cybersecurity

• Insurance Data Security Model Law Adoption:
  • South Carolina adopted the Data Security Act, effective January 1, 2019, mirroring the NAIC standard.
  • Rhode Island introduced legislation to adopt the NAIC's model.
• Joint Cybersecurity Forum:
  • Scheduled for October 10, the forum will focus on the "current cyber risk landscape and cyber threat intelligence, data and information-sharing" with Stanford University.

Innovation and Technology Task Force

• Discussed a survey on state readiness for innovation and technology, with states marked as "ready" to be studied for best practices.
• Approved a plan to:
  • Research states' adoption of anti-rebating, non-cancellation requirements, and e-signature compliance.
  • Confirm state insurance departments' innovation contacts and publish them.
  • Form a small team of regulators to outline plans for information sharing on innovation.
• Discussed regulatory sandboxes, with Connecticut piloting the InsurTech Hub and Iowa's Global Insurance Accelerator supporting early innovators.

Big Data

• Received a report from the Casualty Actuarial and Statistical Task Force on best practices for predictive models and analytics.
• Actuaries from five states volunteered to draft guidance on data sources, model input, and filed rating plans for complex predictive models.

Statutory Accounting Principles Working Group

• Adopted INT 18-03 related to the Tax Cuts and Jobs Act, addressing:
  • Repatriation Transition Tax: Recognized as current year tax expense with required disclosures.
  • Alternative Minimum Tax Credit: May be reported as either current or deferred tax asset.
  • Global Intangible Low-Taxed Income Tax: Deferred taxes for basis differences not recognized.
• Exposed SSAP 108 for comment, which includes:
  • Removal of the Rho method for calculating hedging assets and liabilities.
  • Requirement to provide RBC estimates without special derivative accounting.
  • New reporting schedule and disclosures for hedging programs.
• Finalized guidance for SSAP 21, allowing insurance policies with investment risk to be admitted assets, with specific disclosures on cash surrender value by investment category.

Blanks Working Group

• Adopted 21 proposals for year-end 2018, including:
  • Updated definitions and clarifications for Schedule DB, Part D, Section 1.
  • Alignment of reinsurance types between ceding and assuming schedules.
  • Revisions to P/C Statement of Actuarial Opinion instructions.
  • Introduction of new symbols for private letter rated securities and other administrative procedures.
• Changes for 2019 include:
  • Removal of designation matrices.
  • Addition of specific line categories for preferred stock.
  • New liquidity disclosures for year-end 2019.

Key Regulatory Updates

Risk-Based Capital (RBC)

• Operational Risk:
  • The Operational Risk Subgroup is developing a growth risk charge for life RBC, with an "enhanced add-on" method proposed for exposure.
  • The proposed charge is 1.5% above the 3% operational risk charge for significant growth.
• Investment RBC:
  • Revised RBC factors for invested assets are expected to be implemented for year-end 2020, not 2019.
  • The working group is finalizing the life bond factors for adoption at the Fall National Meeting.
  • The spread adjustment concept was re-reviewed, with no changes justified by tax reform.
• Life RBC:
  • Significant revisions to the 2018 Life and Fraternal RBC formulas due to tax reform, resulting in a 10-15% increase in required capital.
  • RBC ratios are expected to decrease significantly for all life insurers.
  • Longevity risk charge is under review, with possible implementation in 2019 or 2020.
  • Mortality risk charges are being evaluated with a more granular approach, including product type, underwriting, and in-force size.

Reinsurance Task Force

• Received comments on the first draft of proposed revisions to reinsurance credit models to reflect the U.S/EU Covered Agreement.
• Exposed for comment the regulatory transaction referral for SSAP 4, which allows admitted assets only if approved by the domiciliary regulator.

Variable Annuities Framework

• Adopted the VA Framework to revise reserving and RBC for variable annuities, with a targeted implementation date of January 1, 2020.

Retirement Security Initiative

• Joint Long-Term Care Task Force heard a proposal for a multi-state rate approval system to improve coordination among states.

Financial Stability Task Force

• Discussed the scope and design of a possible liquidity stress testing framework for large life insurers.

Additional Notes

• All documents referenced can be found on the NAIC website at naic.org.
• The newsletter includes appendices summarizing proposals from the SAP Working Group and RBC Working Groups.