With the National Association of Insurance Commissioners’ (NAIC) latest move to assess international solvency regulations and make adaptations to the US regulatory structure, Ernst & Young sees increased momentum for global alignment with solvency rules and endorses the Solvency Modernization Work Plan, which NAIC adopted this month.
"We applaud the work of the NAIC on this initiative,” said Philipp Keller, Head of the Ernst & Young Global Solvency II Task Force. “NAIC’s goal to upgrade the current framework is entirely in line with the organization’s historical commitment to be at the forefront of regulation and supervision.”
The NAIC plan will compare the US risk-based solvency system with Europe’s proposed solvency directives, known as Solvency II, and analyze the effect that Solvency II might have on US insurers, particularly with regard to capital requirements, accounting standards, group supervision, valuation issues, and reinsurance. The overhaul of Europe’s solvency framework is scheduled for implementation across the continent beginning in 2012.
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