Insurance commissioners to hold public hearing on credit ratings in industry
The National Association of Insurance Commissioners will hold a public hearing to discuss the role credit agencies should play in the insurance industry.
The National Association of Insurance Commissioners will hold a public hearing to discuss the role credit agencies should play in the insurance industry.
The NAIC is inviting representatives from the credit-rating agencies, carriers and pension funds to testify at the Sept. 24 meeting, officials for the organization revealed today.
Though ratings agencies don’t fall under the purview of the state insurance regulators, regulators depend on the use of credit ratings to determine the insurers’ capital reserves.
Carriers hold some $3 billion in rated bonds, including mortgage-backed securities, which took a beating during the financial crisis.
The NAIC’s ratings agency group, which is holding the hearing, has been evaluating the regulators’ and insurance industry’s dependence on such agencies.
At the meeting, the group expects to pull in information on issues behind ratings, especially concerning municipal bonds and structured securities, as well as recommendations and alternatives to the regulatory agencies.
James J. Wrynn, acting superintendent of New York, and Michael T. McRaith, Illinois’ insurance director, are the co-chairmen of that working group.
The meeting will take place at the Gaylord Convention Center in National Harbor, Md.
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