AIRROC’s Regulatory Committee was established in early 2023 and is co-chaired by two of the AIRROC Board members, Tom Mendralla of Swiss Re and Chris Reichow of R&Q Insurance Holdings, Ltd. The Regulatory Committee has 18 members – a number of which are former regulators. The focus of the group is to support AIRROC on NAIC and other regulatory activities. As a non-profit association AIRROC and its Board do not advocate for any specific position but provide resources and information. Taking actions to assist regulators gain a better understanding of our industry and providing guidance to ensure the benefits and definition of runoff are clear will benefit the entire sector.
In furtherance of its stated goal, the Regulatory Committee on behalf of AIRROC submitted comments to an exposure draft by the NAIC Restructuring Mechanisms (E) Working Group on Best Practices Procedures for IBT/Corporate Divisions. A copy of AIRROC’s submission can be found here.
The focus of AIRROC’s comments centered on Section X – Runoff Procedures. Specifically, the concerns raised related to the narrow in scope manner that runoff is characterized/defined and reliance on an outdated 1997 document that did not adequately portray the way that runoff works today. AIRROC also suggested that the analysis would be better placed in the White Paper the Working Group is currently drafting or even in a separate guidance document.
AIRROC recommended that the NAIC Working Group remove Section X from the Best Practices draft document and further offered to assist the Working Group as an additional resource to help identify the best practices surrounding runoff.
AIRROC’s MISSION is to promote and represent the interests of entities with legacy business by improving industry standards and enhancing knowledge and communications within and outside of the (re)insurance industry. We are grateful and thank all of our Regulatory Committee members for sharing their knowledge and expertise, and for supporting AIRROC’s mission. Educating regulators by contributing valuable information and authoritative support on vital policy issues and likely implications of proposals promotes and benefits the interests of the legacy community.
All AIRROC members can serve on this important committee. If you would like to join, please feel free to reach out to me at carolyn@airroc.org.
