Key takeaways

• The NAIC is pursuing a number of initiatives on cybersecurity including adding a cybersecurity supplement to the annual statement, developing cybersecurity protocols, evaluating state cybersecurity regulation, and developing a cybersecurity consumer bill of rights.
• The NAIC continues to consider proposals to require states to regulate XXX/AXXX, variable annuity and long term care reinsurance captives as multi-state reinsurers in order to maintain accredited state insurance department status. XXX/AXXX reinsurance transactions that satisfy the AG48 standards will be deemed to satisfy the accreditation standards. A new working group has been established to consider standards for captive variable annuity reinsurance transactions.
• The NAIC adopted changes to its Financial Analysis Handbook consisting of new guidance for items to consider in reviewing Form A applications. These are designed to address special concerns that may arise out of private equity funds acquiring insurers.