|April 1, 2014|
Previously published on March 31, 2014
The International Insurance Relations (G) Committee (the “Committee”) Spring NAIC Meeting focused primarily on providing updates to efforts made in the international sphere by the NAIC. Commissioner Consedine of Pennsylvania gave an update on the International Association of Insurance Supervisors (“IAIS”) multilateral memoranda of understanding (“MMOUs”), noting that there are currently 40 signatories to MMOUs, including 3 states, with applications pending for 8 additional states. Commissioner Consedine encouraged states to continue to participate in MMOUs, which prompted comments from Missouri regulators that the IAIS should make it a priority to review pending applications.
The Committee then presented the International Regulatory Cooperation (G) Working Group Report, which noted that a recent MMOU had been entered into with Afghanistan. The report also requested permission to discuss the possibility of entering into an MMOU with the United Arab Emirates, and a motion was passed to adopt the report and to allow such discussions. Shortly thereafter, the ComFrame Development and Analysis (G) Working Group Report was adopted, which detailed the beginning of field testing and outlined general timeframes.
The Committee proceeded to present an update on the U.S./EU Dialogue Project, whereby Commissioner Consedine explicitly noted that the United States does not intend to undergo a unilateral equivalence review, and that Solvency II’s scheduled implementation in 2016 should not disrupt the United States’ system of state-based regulation.
The Committee then proceeded to express its disagreement with a recent report issued by the Organisation for Economic Co-operation and Development categorizing the United States as one of the most restrictive countries with respect to trade. The Committee wrapped up its comments by recognizing successful bilateral talks with Japan. The meeting ended with comments from industry participants expressing concern that the United States is not sufficiently involved in dialogue with the IAIS.