The National Association of Insurance Commissioners recently began work on the development of a model law that would limit how and what information on insurers’ corporate governance practices is collected by state regulators.
The law will likely be drafted by the association’s corporate governance working group and will define what kind of information state regulators can require from insurers in the time between the regulators’ examinations of the companies.
Additionally, the law will would ensure that the data collected by regulators remains confidential.
“The development of an ‘Annual Reporting of Corporate Governance Practices of Insurers Model Act’ would provide a means for regulators to get a better understanding of the governance practices of their domestic insurers,” the NAIC said. “The development of this model law would also ensure the confidentiality of governance information collected from insurers and assist U.S. regulators in achieving greater consistency with international standards. As part of the model law development process, the Working Group would identify overlapping or redundant requests for corporate governance information that can be removed from other areas of the regulatory process.”
The law is still is still in the drafting process, so details of the legislation remain unclear, though the American Bankers Insurance Association will provide updates on the law.