The National Association of Insurance Commissioners released keynote remarks by NAIC President and North Dakota Insurance Commissioner Jon Godfread from the NAIC 2025 Summer National Meeting, setting out priority work to modernize state-based insurance supervision. The address centred on strengthening governance of the Risk-Based Capital (RBC) framework, alongside heightened attention to reinsurance oversight, asset adequacy testing and state implementation of AI guardrails. Godfread highlighted the Risk-Based Capital Model Governance Task Force’s work to build a clearer governance structure for a tool he described as having expanded from an annual solvency flag into a year-round input to supervisory and company decision-making, including stress testing, Own Risk and Solvency Assessment, group capital work, liquidity reviews and international coordination. He said guiding principles for RBC governance are on track for adoption by the end of 2025 and argued that governance should be anchored in solvency objectives rather than outcomes such as product availability or competitiveness. On reinsurance, the remarks pointed to increased scrutiny of offshore life reinsurance and asset movements into jurisdictions with differing transparency and oversight, while noting the NAIC is “at the finish line” on Asset Adequacy Testing and expects it to be applied rigorously and consistently. On the property and casualty side, more than 40 states participated in a P&C Reinsurance Roundtable in Pasadena focused on catastrophe trends, modelling and capacity in tightening global reinsurance markets. The speech also cited that 24 states have adopted the NAIC AI Model Bulletin, described NAIC engagement to remove a proposed federal moratorium on AI regulation, and reiterated a call to eliminate the Federal Insurance Office on the basis that it lacks regulatory authority and creates confusion internationally. Next steps referenced in the remarks include adopting RBC model governance guiding principles by the end of 2025 and continuing monitoring of offshore reinsurance-related developments with potential follow-on action where transparency and oversight are considered insufficient.
National Association Of Insurance Commissioners 2025-08-12
National Association of Insurance Commissioners sets end-2025 goal for Risk-Based Capital model governance principles and warns on offshore reinsurance transparency
At the 2025 Summer National Meeting, National Association of Insurance Commissioners President Jon Godfread prioritized modernizing state-based insurance supervision. Key areas include strengthening Risk-Based Capital (RBC) governance, enhancing reinsurance oversight, and implementing AI guardrails. Godfread emphasized RBC governance should prioritize solvency objectives and highlighted scrutiny of offshore reinsurance and asset adequacy testing.