• Accounting update from the NAIC Summer 2014 meeting

    The National Association of Insurance Commissioners (NAIC) 2014 Summer National Meeting was held in Louisville, KY. A number of issues and statutory accounting changes were addressed over the course of the meeting. Highlights from some of the working group meetings are summarized below.
  • Recent FASB board discussion on insurance contracts

    On February 19, 2014 the Financial Accounting Standards Board (FASB) announced it would abandon its rewrite of existing US GAAP through the Insurance Contracts Exposure Draft and instead focus on targeted improvements to the existing standards for long-duration contracts and targeted disclosure enhancements for short-duration contracts. On April 16, 2014 the FASB began its discussions on those improvements and disclosures that should be included in the scope of this project.
  • ORSA – Why should exempt companies care?

    Over the last few years the NAIC has established its expectations for insurance companies to maintain a risk management framework and conduct an Own Risk and Solvency Assessment (ORSA), including the filing of an ORSA Summary Report with state regulators. In 2012, the NAIC issued a Guidance Manual to provide insurers guidance with respect to reporting on ORSA, and later the NAIC adopted an ORSA Model Act. In 2012 and 2013 the NAIC conducted two separate feedback pilot projects and provided feedback and observations in a memo to the industry.