The National Association of Insurance Commissioners has launched the Risk-Based Capital (RBC) Model Governance (EX) Task Force to develop governance principles for future updates to RBC formulas and to consider changes intended to improve consistency across the RBC framework. The task force will develop guiding principles for adjusting RBC for life, health, and property and casualty insurers, complete a gap analysis and consistency assessment, and establish a process for analyzing both retrospective and forward-looking RBC changes with regular reviews of RBC outcomes. It will also evaluate when and how to integrate new and emerging risks into RBC, including the data needed to set factors, review statistical safety levels, and establish guidelines for recalibrating formulas. The initiative includes plans for an education and public messaging campaign on the role and strengths of RBC within the U.S. state-based insurance regulatory system. The task force is led and co-chaired by Wisconsin Insurance Commissioner Nathan Houdek and Ohio Department of Insurance Director Judith French.
National Association Of Insurance Commissioners 2025-02-20
National Association of Insurance Commissioners launches Risk-Based Capital Model Governance Task Force to set principles and improve consistency in RBC formula updates
The National Association of Insurance Commissioners has established the Risk-Based Capital (RBC) Model Governance Task Force to develop governance principles for updating RBC formulas and enhancing consistency. The task force will conduct a gap analysis, assess consistency, and establish processes for analyzing RBC changes, including integrating new risks and recalibrating formulas. An education and public messaging campaign on RBC's role in the U.S. insurance regulatory system is also planned.