Greg Bordonaro recently mentioned in the Hartford Business Journal that the American Council of Life Insurers, a trade group for the life insurance industry, has asked the National Association of Insurance Commissioners to loosen several regulations in order to help the industry recover after suffering recent losses. Among their proposals is a decrease in the amount of reserves and capital required to sell life insurance, which could lead to insurers being unable to cover the risk of their products.
The NAIC likes other ACLI proposals to loosen certain investment and accounting practices because it believes it will cut costs by eliminating redundancies in insurance.
Most states adopt NAIC changes to meet solvency standards, although they’re not required to do so.
NAIC members are set to vote on the proposed changes by the end of this year, according to Greg.