April 2025 MPC Meeting Schedule Posted

The schedule for the April 2025 MPC meeting in Edina has been posted on the meeting website in the Meeting Materials section. The website features in-person and online registration as well as other meeting information.

As part of the April meeting, administrators will have the chance to sign up for 15-minute one-on-one sessions with Alexis Comrack or Adam Solove to personally demo and ask questions about AssessConnect (the new assessment tool and company information database). The links to sign up for the sessions are on p. 2 of the schedule.

While this schedule is subject to change, the general structure of the meeting (with meetings and presentations all day on Wednesday and until almost noon on Thursday) is not expected to change. Also, please note that the times listed for MPC General Session presentations are estimates. We will do our best to keep to the posted times, but presentations might start a few minutes early or late depending on how the General Session progresses.

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

  Staff Contact - Sean McKenna

NAIC Updates

On March 13, 2025, the Financial Stability Task Force (FSTF) released its March 17 call materials, which included a memo from Bob Kasinow (NY) on the work of the Macroprudential Working Group (MWG). The working group met in regulator-only session on February 6 and received an update from Carrie Mears (IA) on the International Association of Insurance Supervisors (IAIS) Macroprudential Supervision Working Group’s (MSWG’s) Issue Paper on Cross Border Reinsurance and Alternative Assets. According to Kasinow, many topics in the issue paper align with ongoing MWG initiatives. The working group also met on February 26 to discuss its reinsurance-heavy workplan for 2025, which includes:

• An education program for state regulators on cross-border reinsurance, including (1) Schedule S reporting; (2) different reinsurance transaction structures; (3) the accounting treatment of these transactions; (4) other jurisdictions’ solvency framework, as deemed relevant; and (5) an overview of how RBC capital charges are derived from annual statement reporting for cross-border reinsurance transactions. Following this education program, the MWG and FSTF will consider whether any further analysis of RBC is warranted.
  
• Review of the use of Sidecars (a financial entity formed by an insurer with the support of third-party investors) in the life insurance sector, retrocessions, and reinsurance recapture provisions.
  
• Creation of a reinsurance dashboard.

The materials also include a presentation from Fred Andersen (MN) on regulators’ ongoing Actuarial Guideline 53 asset adequacy testing reviews, which appears to be consistent with past presentations on this topic.

In other news, registration is now open for the NAIC International Insurance Forum on May 29–30 in Washington, D.C.

The Big Data and Artificial Intelligence Working Group met on March 11 to provide an update on its AI/ML (artificial intelligence/machine learning) survey work and discuss the next steps for the working group. Highlights of the meeting include:

• Regulatory Framework Updates: Commissioner Humphreys (Chair - PA) identified three areas for potential expansion of the existing regulatory framework regarding the oversight of insurers’ use of AI: (1) regulatory filings—this could include incorporating use of AI into financial/market conduct exams; (2) governance programs—identifying required/best practices and prohibited practices/data elements; and (3) disclosures to regulators and consumers. Humphreys expressed a desire for the NAIC to move ahead before too many states have differing standards and urged regulators to come to the National Meeting prepared for further discussion. Humphreys also feels strongly that “regulators should have authority over vendors,” which will continue to be a topic of conversation at the Third-Party Data and Models Task Force.
  
• AI Systems Evaluation Work: The working group’s charge related to AI systems evaluation is being led by Commissioner Ommen (Co-Vice Chair - IA). Ommen reported that the working group will begin gathering subject matter experts to develop regulatory tools/guidance based on what states are currently doing to review insurers’ AI systems.

On March 13, the Cybersecurity Working Group previewed a work plan for the year, including the following projects:

• Cyber Data Wish List: The working group will identify data elements related to cybersecurity and cyber insurance in collaboration with the Casualty Actuarial Statistical Task Force and the Statistical Data Working Group (and potentially others) and consider enhancements to the current cyber blank and cyber insurance market report. Cindy Amann (Chair - MO) said the working group is mindful of current NAIC initiatives underway to improve data processes and will endeavor to avoid repeat data collection. NAIC staff is working with AM Best to schedule a presentation on cyber insurance market data to help inform these efforts.
  
• Cybersecurity Event Notification Portal: The working group continues to discuss the creation of a centralized portal for companies to report cybersecurity incidents. Following the Fall NAIC Meeting, the working group issued a survey to regulators to gauge interest in the project and learn more about the number and types of incident notices received by state departments of insurance. An analysis of the survey results is expected soon; once it’s available, the working group will discuss next steps.
  
• Tabletop Exercises: The working group wants to revive cybersecurity tabletop exercises, which were conducted years ago in coordination with the Treasury Department. The goal is for state volunteers to host exercises with companies, law enforcement, and NAIC staff.
  
• Compliance Testing of Model #668: The Chief Financial Regulator Forum issued a referral to the working group to consider how to incorporate testing for compliance with the Insurance Data Security Model (#668) into financial exams. Working group leadership is thinking through a potential framework and will expose a discussion draft for comment.
  
• Education & Awareness: The working group will continue to schedule presentations related to cybersecurity and cyber insurance threats, risks, and trends.

The Market Conduct Examination (MCE) Guidelines (D) Working Group discussed its 2025 charges and work plan. Upcoming projects include: (1) working on its referral from the Accelerated Underwriting Working Group (which has since been disbanded) on incorporating accelerated underwriting into the Market Regulation Handbook; (2) working with the H Committee to develop guidance for examiners regarding the oversight of insurers’ use of AI; and (3) potential work related to the newly formed PBM Working Group, which will be informed by soon-to-be-received guidance from the D Committee.   Staff Contact - Sean McKenna

State Privacy Updates

New York Attorney General James file a lawsuit against National General and Allstate Insurance for failing to protect New Yorkers’ personal information. The lawsuit alleges that the companies suffered two data breaches as a result of failing to institute reasonable data security safeguards and failed to notify consumers of the data breaches.

Oregon Attorney General Rayfield released a report showing results from the first six months of the Oregon Consumer Privacy Act. Specifically, the report discussed common deficiencies identified in the notices of violation it sent, such as confusing privacy notices, lack of disclosures, and burdensome rights mechanisms.

The California Privacy Protection Agency Board voted on March 7 to begin a formal rulemaking procedure on drafting data broker regulations under the Delete Act. The draft rules aim to establish specifics around the creation and application of a data deletion tool to recognize consumer requests across data brokers.

On March 10, California Attorney General Bonta announced an ongoing investigative sweep into the location data industry, sending letters to advertising networks, mobile app providers, and data brokers that collect and disseminate consumers’ geolocation information without proper consent or opt-out mechanisms under the California Consumer Privacy Act.

  Staff Contact - Sean McKenna