Key takeaways:

• The NAIC began to take actions to implement the amendments to its Credit for Reinsurance Model Act and Regulation it adopted in 2011 and to develop the NAIC accreditation standards relating to those amendments. The 2011 amendments included collateral reduction for certified assuming insurers.
• The NAIC adopted a Own Risk Solvency Assessment (“ORSA”) Guidance Manual, which is designed to assess the adequacy of an insurer’s capital levels in light of the insurer’s unique business mix and strategy, and authorized the development of an ORSA model law to require insurers to conduct an annual assessment.
• The NAIC concluded an analysis of contingent deferred annuities offered by life insurers and concluded that, although these products present risks similar to those found in financial guaranty insurance, life insurers are better suited to write these products because they include life contingent pricing components. However, the NAIC established a new working group to review solvency issues related to these products.