February 8, 2024

April MPC Meeting Website Goes Live

The website for NOLHGA’s April 2024 MPC meeting in Denver has gone live. The site offers both in-person and online registration for the meeting, which will be held on April 18 and 19. An agenda for the meeting will be released in March, but we expect the meeting to run all day on April 18 and until noon or so on April 19.

The meeting website also offers online hotel reservations for the Grand Hyatt Denver, the host hotel for the meeting. The deadline for reservations at the NOLHGA rate of $249/night plus tax is March 26, 2024. The room block could sell out earlier than that, so we encourage everyone to book their rooms as soon as possible.

If you have any questions about the meeting, please contact Sean McKenna. If you have any trouble accessing the meeting website, please contact Dan Hicks.

  Staff Contact - Sean McKenna

NAIC Announces 2024 RITF Roster

The NAIC has announced the 2024 roster of the Receivership and Insolvency (E) Task Force. The Task Force’s new Chair is Dana Popish Severinghaus (Illinois), and the Vice Chair is Glen Mulready (Oklahoma). Other members (new members are in bold type) include:

• Mark Fowler (Alabama)
  
• Lori Wing-Heier (Alaska)
  
• Alan McClain (Arkansas)
  
• Michael Conway (Colorado)
  
• Andrew Mais (Connecticut)
  
• Karima Woods (District of Columbia)
  
• Gordon Ito (Hawaii)


• Doug Ommen (Iowa)
  
• Vicki Schmidt (Kansas)
  
• Sharon Clark (Kentucky)
  
• Timothy Temple (Louisiana)
  
• Timothy Schott (Maine)
  
• Gary Anderson (Massachusetts)
  
• Chlora Lindley-Myers (Missouri)
  
• Eric Dunning (Nebraska)
  
• Scott Kipper (Nevada)
  
• Justin Zimmerman (New Jersey)
  
• Mike Causey (North Carolina)
  
• Jon Godfread (North Dakota)
  
• Judith French (Ohio)
  
• Andrew Stolfi (Oregon)
  
• Michael Humphreys (Pennsylvania)
  
• Elizabeth Kelleher Dwyer (Rhode Island)
  
• Michael Wise (South Carolina)
  
• Carter Lawrence (Tennessee)
  
• Cassie Brown (Texas)
  
• Mike Kreidler (Washington)
  
• Nathan Houdek (Wisconsin)

  Staff Contact - Sean McKenna

FSB Releases 2024 Work Programme

The Financial Stability Board (FSB) published its 2024 Work Programme on January 24, 2024. Details include:

Global Cooperation on Financial Stability: The FSB will continue participating in the FSB-IMF (International Monetary Fund) Early Warning Exercise and monitoring vulnerabilities related to technological innovation, climate change, and non-bank financial intermediation (NBFI).

Resolution Reforms: In addition to assessing lessons learned from the March 2023 banking failures (which includes work on interest rate and liquidity risk), the FSB will:

• Conduct follow-up work on “public backstop funding mechanisms, operationalization of bail-in, resolution strategies and tools, and the impact of social media and digital innovation on resolution.”
  
• Finalize its toolkit of resources/tools for central counterparty (CCP) resolution authorities for use in CCP resolution (expected in May).
  
• Publish the first list of insurers subject to the resolution planning standards of the Key Attributes (expected in December).

NBFI Resilience: The FSB will explore policy recommendations/options for non-bank financial leverage; complete the data pilot project to enhance the ability of the FSB and authorities to monitor vulnerabilities associated with open-ended fund liquidity mismatch; enhance liquidity preparedness of non-bank market participants for margin and collateral calls; begin work related to the functioning and resilience of repo markets; and publish the annual Global Monitoring Report on NBFI (expected in December).

Cross-Border Payments: The FSB’s work on this topic is related to bank and non-bank supervision and data frameworks. In 2024, the FSB will publish several reports related to cross-border payments; issue recommendations to promote alignment and interoperability in data frameworks related to cross-border payments; and develop recommendations to strengthen the consistency of regulation and supervision of banks and non-banks providing these payment services.

Digital Innovation: A report on recent developments in AI and potential financial stability implications is expected in November. The FSB will also complete its work on the financial stability implications of tokenization, emerging market and developing economies, and global stablecoins.

Cyber and Operational Resilience: The FSB will design a format for incident reporting exchange (FIRE) to promote greater convergence in the reporting of cyber-related incidents to financial authorities. The FIRE consultation report is expected in October.

Climate-Related Financial Risks: The FSB will issue a progress report on achieving consistent climate-related financial disclosures (in November); analyze the relevance of transition plans and planning by financial and non-financial firms for financial stability; and publish (in July) an assessment of regulatory/supervisory initiatives related to identifying and assessing nature-related financial risks.

  Staff Contact - Sean McKenna

IAIS Releases 2023–2024 Roadmap

The International Association of Insurance Supervisors (IAIS) recently published its 2023–2024 Roadmap. The Roadmap, which is the final Roadmap under the 2020–2024 Strategic Plan, provides an update on 2024 activities. Below is a timeline of the various workstreams being pursued by the IAIS this year:

First Quarter

• Consultation on proposed revisions to the Holistic Framework supervisory and supporting materials based on the findings of the Targeted Jurisdictional Assessment in March.
  
• Third climate consultation on valuation and enterprise risk management (ERM); the full set of consultations will culminate in a more comprehensive application paper on climate risk to be finalized in the fourth quarter.
  
• Determine the topic for the 2024 special topic GIMAR (an IAIS annual report on the outcomes of the Global Monitoring Exercise).

Second Quarter

• Publication of the Insurance Capital Standard (ICS) and Aggregation Method (AM) Data Collection packages.
  
• Consultation on a draft DEI application paper on the supervision of DEI regarding governance, risk management, and culture.
  
• Publication of the IAIS 2023 Year in Review.

Third Quarter

• Consultation on the Global Monitoring Exercise (GME) ancillary indicators on credit risk, reinsurance and derivatives, and emerging risks.
  
• Consultation on the updated Application Paper on regulation supporting inclusive insurance markets.
  
• Consultation on a draft application paper with principles-based objectives and a toolkit for how supervisors can approach operational resilience.
  
• Consultation on a draft DEI application paper on the fair treatment of diverse consumers.
  
• Publication of the GIMAR mid-year update.

Fourth Quarter

• The ICS as a Prescribed Capital Requirement (PCR) will be adopted in December 2024 along with the ICS/AM Comparability Report, ICS Economic Impact Assessment, ICS Calibration Document, and revised ICPs 14 (Valuation) and 17 (Capital Adequacy).
  
• Consultation on a draft application paper on AI/Machine Learning (ML) that details supervisory guidance on how the ICPs can be interpreted/applied in the context of AI/ML use cases.
  
• Publication of the 2024 GIMAR.
  
• Publication of the 2025–2029 Strategic Plan in December.

  Staff Contact - Sean McKenna