FACI – Federal Advisory Committee on Insurance

2021 0210 - FACI International Subcommittee - Perspectives on the Request for Information (RFI) on a FIO Study of the ICS - February 10, 2021 - 22p

2016 0818 - FACI - Federal Advisory Committee on Insurance Impact of Low Interest Rates on Life Insurers - 15p

2014 - Treasury Announces Appointments to the Federal Advisory Committee on Insurance - [link]
- The 21 individuals appointed today to the Federal Advisory Committee on Insurance include:
  - Birny Birnbaum, Executive Director, Center for Economic Justice
  - Elizabeth Brown, Professor, Georgia State University
  - Michael Consedine, Commissioner, Pennsylvania Insurance Department
  - Brenda Cude, Professor, University of Georgia
  - Jacqueline Cunningham, Commissioner, Virginia Bureau of Insurance
  - John Franchini, Superintendent, New Mexico Office of the Superintendent of Insurance
  - Nicholas Gerhart, Commissioner, Iowa Insurance Division
  - Daniel Glaser, President & CEO, Marsh & McLennan Companies (Chair of the Committee)
  - Mark Grier, Vice Chairman, Prudential Financial, Inc.
  - David Herzog, EVP & CFO, American International Group, Inc.
  - George Keiser, Representative, North Dakota House of Representatives
  - Scott Kipper, Commissioner, Nevada Division of Insurance
  - Benjamin Lawsky, Superintendent, New York Department of Financial Services
  - Theodore Mathas, Chairman, President & CEO, New York Life Insurance Company
  - Julie McPeak, Commissioner, Tennessee Department of Commerce and Insurance
  - Theodore Nickel, Commissioner, Wisconsin Office of the Commissioner of Insurance

Member <WILLIAM> White started by noting that over the past 10 to 15 years, the issues around the use of captives has become much more focused in terms of concerns about how to count or how to look at the reserving as it affects solvency especially on the life side.
He added that the most recent statistics show that nearly 25 to 35 percent of the entire commercial market utilizes captives making it the largest part of the Alternative Risk Transfer (ART) market.
The NAIC has been focusing on the use of captives as special purpose vehicles for managing excess reserves or what are considered to be excess reserves for losses with life insurance companies.
The concern is whether these reserves that have either been transferred and/or financed using captives are properly disclosed and accounted for in their parent company’s financial statements.
This has important ramifications as work continues on developing solvency criteria at the NAIC as well as in the on-going international initiatives.
Commissioner White stated that the NAIC had established a special committee to study the reserve redundancy matter.