Regulation and Oversight
Responding to the European Commission's latest consultation exercise on the revision of Solvency II, the Federation of European Risk Management Associations (FERMA) said that European insurance regulation should automatically treat captive insurance companies as low-risk undertakings. There should be clear reasons to subject captives to fuller regulation, FERMA said.
The National Association of Insurance Commissioners (NAIC) has formed its first new standing "letter" committee since 2004 to focus on cyber security and issues around technology and innovation. The new committee will address the insurance implications of emerging technologies and cyber security.
In a recent statement, the International Association of Insurance Supervisors (IAIS) addressed what it sees as the importance of diversity, equity, and inclusion (DE&I) considerations in insurance supervision. The IAIS said there is growing acknowledgment that advancing DE&I in insurers' organizations and business models supports sound outcomes and sustainability objectives.
The Captive Insurance Division of Vermont’s Department of Financial Regulation has received a 5-year accreditation renewal from the National Association of Insurance Commissioners (NAIC). The state’s Insurance Division also received an accreditation renewal from the NAIC.
The Vermont Department of Financial Regulation (DFR) has released a report examining the impact climate change is having on Vermont's insurance industry. The report notes that steps such as requiring publicly traded companies to disclose climate risks could help DFR regulate Vermont-domiciled captive insurance companies.
Legislation now nearing final approval by Vermont lawmakers would ease reporting requirements for new captive insurance companies. Under the measure, S.88, captives, before receiving a license, would have to file a copy of their organizational documents with the state insurance commissioner along with any other documents requested.
Existing frameworks such as enterprise risk management minimize the need for government mandates for better governance of sustainability risks, according to the Federation of European Risk Management Associations (FERMA). EU-wide mandatory requirements for due diligence would add administrative costs and could damage competitiveness for European companies, FERMA said.