There is considerable discussion being waged among representatives of the NAIC, FDIC, Federal Insurance Office (FIO), The International Association of Insurance Supervisors and the American Insurance Association, to name a few, regarding what standard should be used as a measurement in solvency and insurance financial-fitness assessments for insurance companies.
Should the focus be on capital or on risk concentration? The U.S. and Europe have different approaches. What works in Europe does not necessarily work in the U.S.
Will international and European Solvency II standards force a lot of new requirements on the insurance industry in the U.S.?
The NAIC is currently working on its own version of solvency standards under the Solvency Modernization Initiative because many regulators do not agree with the capital-requirements approach of Solvency II under discussion in Europe.
The insurance information provided on this blog is not legal advice and the reader is advised to consult an attorney regarding application of this information in any particular situation.
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