Corporate governance in insurance continues to be a growing focus among state regulators. The National Association of Insurance Commissioners (the NAIC) adopted the Corporate Governance Annual Disclosure (CGAD) Model Act and Model Regulation in 2014, which set forth requirements insurers will need to implement and disclose. Currently, 14 states (California, Connecticut, Florida, Idaho, Indiana, Iowa, Louisiana, Montana, Nebraska, New Hampshire, Ohio, Rhode Island, Virginia, and Vermont) have adopted the CGAD Model Act and six states (Florida, Iowa, Louisiana, Nebraska, Rhode Island, and Vermont) have adopted the CGAD Model Regulation. While not a current NAIC accreditation requirement, many expect universal adoption of both the CGAD Model Act and Model Regulation by many United States jurisdictions.
Corporate governance has also become an important focus for Financial Condition Examiners (Examiners) who conduct on-site financial examinations of insurers on behalf of state insurance commissioners. Thus, regardless of a state’s adoption of the CGAD models, regulatory scrutiny will be applied through the financial examination of companies
To learn more, please see GT Alert “Corporate Governance in Insurance: Key Regulatory Considerations.”