NAIC nears adoption of disputed rules on captives

Actuaries warn of non-compliance cost to end-consumers and impact on insurers

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The US National Association of Insurance Commissioners (NAIC) has pushed ahead with regulatory reforms on the financing of so-called redundant reserves by life insurers, although actuaries say parts of the package make "absolutely no sense".

A meeting of the NAIC's principle-based reserving implementation (PBRI) task force passed Actuarial Guidance 48 (AG 48) on November 17. The guidance is intended to harmonise the regulation of insurers using captives and special-purpose vehicles to offload th