An NAIC plan to second-guess bond ratings is ‘nonsensical’, insurers say
Proposal to create “quasi rating agency” at regulatory body sparks backlash from industry and US Congress
A proposal that would hand the National Association of Insurance Commissioners the power to overrule ratings set by credit rating agencies has sparked a backlash from insurers and lawmakers.
The proposal, put forward in a meeting on May 15, would allow a unit within the NAIC to overrule credit ratings that it believes are “not a reasonable assessment of risk of the security for regulatory purposes” and replace them with its own ratings.
The Securities Valuation Office, which put forward the
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