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NAIC Hosts Annual Financial Summit in Kansas City
Hundreds of regulators and industry observers descended upon Kansas City, Mo., headquarters of the National Association of Insurance Commissioners, to attend the annual Insurance Summit Sept. 12-15. Having this meeting at the headquarters allows many NAIC staff to attend and lead educational training sessions for state insurance regulators. The event has grown over the years, initially limited to financial regulatory issues but given the increased attention to issues like innovation and technology, cyber, climate risk, market conduct, race and insurance, and diversity, equity, and inclusion, many more educational opportunities exist. It is also an opportunity for NAMIC staff and others in the industry to interact with key NAIC staff and insurance regulators on these important issues.
Much like the NAMIC convention, the highlight of the event was the NAIC Officer Panel. NAIC president and Idaho Insurance Commissioner Dean Cameron talked about his accomplishments, which include the standing up of the H Committee putting cyber, artificial intelligence/machine learning, and other evolving issues to the forefront of the NAIC agenda. It was also mentioned the finalization of State Ahead 2.0 is nearing completion and will be published in the next month. President-elect and Missouri Insurance Director Chlora Lindley-Myers talked about the Women in Insurance Summit, which took place in Portland, Ore., during the last NAIC national meeting and that communication was her key piece of advice to have a successful career in insurance. NAIC vice president and Connecticut Insurance Commissioner Andrew Mais focused most of his remarks on why the NAIC is active in the international space. He also honed in on recruitment efforts and retention of talent citing that there is a broader workforce available that needs to be educated on the benefits of a career in insurance. Finally, secretary-treasurer and North Dakota Insurance Commissioner Jon Godfread noted that insurance regulators are the best-kept secret that states have, as they are focused on ensuring companies maintain solvency and strong consumer protections. He also emphasized his strong support of the state-based system of regulation.
The summit included dozens of other sessions, and NAMIC staff attended many of them. One session NAMIC attended related to the various proposals on structured securities. NAIC staff presented the information in a wholistic manner than connected several workstreams to the various projects being worked on by NAIC working groups and task forces. This includes the work the Statutory Accounting Principles (E) Working Group is doing on the accounting standard for bonds; the new reporting the Blanks (E) Working Group is charged with related to bond accounting; and the proposal by the Valuation of Securities (E) Task Force to collect market data fields to understand the differences between rating agency methodologies, the proposed financial modelling of collateralized loan obligations, and the changes contemplated related to risk-based capital for bonds.
While not widely attended by the insurance industry, given the growth in content offered, it’s not hard to see why the NAIC continues to invest in this premier educational event for state insurance regulators.
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