Jenn Webb To Join NOLHGA
Jennifer Webb, former Assistant Vice President, Assistant General Counsel, and Head of State Government Affairs with Pacific Life Insurance Company, has been hired for the new role of NOLHGA Chief of Staff. Her first day will be April 8.
As Chief of Staff, Webb will act as a strategic partner to NOLHGA President Katie Wade and will support the NOLHGA team in the implementation of organizational goals and priorities and the development and execution of NOLHGA’s three-year strategic plan.
Webb should be familiar to many in the guaranty community. She served on the Boards of four guaranty associations (California, Minnesota, North Dakota, and Oregon), and she was a speaker at NOLHGA’s 2021 Legal Seminar.
At Pacific Life, which she joined in 2019, Webb led the company’s comprehensive State government relations program, focusing on regulatory and legislative risks and opportunities. She educated public officials and their staff on public policy that impacted Pacific Life and its customers; represented Pacific Life at the NAIC, NCOIL, and before state legislatures generally; and worked with various state and federal trade associations, including serving in leadership roles.
Before joining Pacific Life, Webb spent four years with the Independent Insurance Agents and Brokers of America (IIABA) as Counsel, Federal Government Affairs and Senior Counsel, Federal Government Affairs. She also served as Counsel and Director of Regulatory Affairs for the National Association of Professional Insurance Agents (PIA).
Members will have a chance to meet Webb later this month—she will attend the April MPC meeting in Denver. Please join the NOLHGA staff in welcoming Jenn to the NOLHGA family.
Staff Contact - Sean McKennaIAIS, FSI & NAIC Updates
On March 27, 2024, the International Association of Insurance Supervisors (IAIS) launched a consultation on draft revisions to supervisory material related to the Holistic Framework. Draft revisions were made to (1) ICP 16 (Enterprise Risk Management for Solvency Purposes), related to liquidity risk, counterparty risk management, and recovery plans; and (2) ICP 12 (Exit from the Market and Resolution), related to resolution plans and powers. Comments are due on June 27, and a public background session will be held on April 11.
The Financial Stability Institute’s (FSI) e-learning platform, known as FSI Connect, now features a series of tutorials on policyholder protection schemes to reflect the December 2023 IAIS Issues Paper on the topic. FSI Connect is available for use by central banks, supervisory authorities, deposit insurers, and “other eligible public sector authorities.”
In NAIC news, Stephen Viña (Office of the National Cyber Director (ONCD)) provided the Cybersecurity Working Group with an overview of the history and mission of the ONCD, which serves as an advisor to the President on cybersecurity policy and strategy while also acting as a coordinating body on cyber issues among agencies. Viña emphasized the importance of memory safety, highlighting the ONCD’s “Back to the Building Blocks” report and suggesting that some insurers may want to ask questions about memory safety in their underwriting applications. He also talked about the importance of developing talent in the cybersecurity space. Finally, he briefly mentioned the Cybersecurity & Infrastructure Security Agency’s (CISA) draft rule. Following the ONCD presentation, Michael Peterson (California) reported that the working group continues to work on addressing the “one-to-many” notification problem and hopes to circulate a practical solution to this issue later this year.
On March 28, 2024, the NAIC’s Special Committee on Race and Insurance (SCORI) life insurance workstream held a panel discussion on how criminal records impact access to life insurance products, which featured remarks from Chastity Murphy of the Treasury Department. Murphy said that Treasury has been collaborating with the White House Re-entry Committee and the Department of Justice to host roundtables to discuss financial services barriers for the justice-involved population.
Lack of life insurance is one such barrier, making collaboration with insurers critical; financial programs tailored for this population should include life insurance education. There is an urgent need to gather data to determine the magnitude of the issue, the root causes of barriers, and the impact of the existing initiatives designed to address the problem. In April, Treasury will launch a financial literacy page for justice-involved individuals, and Murphy said that gathering the appropriate resources and information for life insurance would be beneficial. Commissioner Humphreys (Co-chair – Pennsylvania) suggested collaborating with Murphy to provide information. Murphy also said she’d like the NAIC to be involved in the next roundtable focused on exploring access to credit.
The life insurance workstream is developing a survey for life insurance companies so regulators can better understand how companies are using criminal history in underwriting and evaluate the differences in company approaches. The survey will be released to the public once regulators have had a chance to provide feedback.
Staff Contact - Sean McKennaAI Activity
On March 28, 2024, the Office of Management and Budget issued its final memorandum on the use of artificial intelligence (AI) by federal agencies and departments. The memorandum establishes an exacting set of governance and risk management requirements to protect the rights and safety of the public. Requirements include impact assessments, identification/mitigation of algorithmic discrimination, ongoing monitoring, human oversight, and more.
On March 26, the National Telecommunications and Information Administration issued a report on AI accountability that, among other things, recommends that federal government suppliers, contractors, and grantees be required to “adopt sound AI governance and assurance practices for AI used in connection with the contract or grant, including using AI standards and risk management practices recognized by federal agencies, as applicable.”
On March 27, the Department of the Treasury released a report on AI-specific cybersecurity and fraud risks in the financial sector, which identifies best practices for managing such risks (you can find the press release for the report here). While the report is bank-centric, it also includes the insurance industry.
Finally, Nevada has adopted the NAIC AI model bulletin, joining Alaska, Connecticut, Illinois, New Hampshire, Rhode Island, and Vermont. Nevada’s version does not make any substantive changes to the model.
Staff Contact - Sean McKennaNick Thompson Passes Away
Charles Nicholas (Nick) Thompson, former NOLHGA Board member and a longtime member of the guaranty system, passed away on March 30, 2024, following a courageous battle with cancer. He was 69.
Nick served on the NOLHGA Board of Directors from October 2017 to October 2020, and during that time also served on the Board’s Audit, Conflicts, and Public Policy Coordination Committees. He represented UnitedHealthcare on many guaranty association Boards over the years—including Alabama, Arkansas, California, Connecticut, Delaware, Florida, Indiana, Louisiana, and Montana—serving in most capacities (Chair, Vice Chair, Secretary/Treasurer, and Director). He also served as a member of NOLHGA’s Penn Treaty/ANIC and Senior Health Insurance Company of Pennsylvania (SHIP) Task Forces.
Nick had a long and distinguished legal career, working for a number of firms as well as the Arkansas Insurance Department and UnitedHealthcare. He was even involved in litigation in the Baldwin-United insolvencies, one of the formative events in the history of the guaranty system. His obituary can be found here.
Nick was a good friend and genuine supporter of the guaranty system. The NOLHGA staff would like to express our deepest condolences to his family and friends.
Staff Contact - Sean McKenna