Reporting Developments Affecting the Insurance and Reinsurance Industries
Locke Lord will host the Connecticut Bar Association CLE program presented by the Privacy and Cybersecurity Committee on Wednesday, March from 5:00 pm – 7:00 pm. Alex Cox, will serve on a panel that will discuss the New CT Data Privacy Act (ECS230301).
Read MoreSpecialty insurer Beazley sponsored the first Cyber Insurance Catastrophe (CAT) bond recently, a new type of ILS or insurance linked security issued by a Bermuda entity. They announced the $45 million private placement on January 9, 2023. The bonds provide investors with a generous floating rate of interest and a return of principal in one year, provided that no single catastrophic event occurs across Beazley’s portfolio of cyber insurance policies that results in more than $300 million of losses. Any losses above $300 million incurred by Beazley on those policies as a result of that one event would be absorbed by the investors, up to the $45 million principal amount. The deal was marketed under an NDA, so not all of the details are available, but the bonds will not protect against losses from a state-sponsored cyberattack, which is typically excluded from cyber insurance policies as an act of war.
Read MoreLast month the members of the National Association of Insurance Commissioners (“NAIC”) elected new leadership from amongst their membership for 2023. Missouri Director Chlora Lindley-Meyers is the new President and the first woman of color elected to that position. Connecticut Commissioner Andrew N. Mais is the new President-Elect, which means that he will fill in as President whenever, due to exigent circumstances, Director Lindley-Meyers is unable. As President-Elect, Commissioner Mais will be the presumptive NAIC President in 2024. North Dakota Commissioner Jon Godfread was elected Vice-President while Virginia Commissioner Scott A. White was elected Secretary-Treasurer.
Earlier this month, the NAIC named its committee chairs and vice chairs. The officers and the most recent past president all serve on the Executive Committee while Director Lindley-Myers will chair the Executive Committee as NAIC President. While the Executive Committee handles administration of the NAIC, the letter committees are where the bulk of the substantive law-making work of the NAIC occurs. As a result, the chairs and vice-chairs of these committees wield substantial influence.
Read MoreAt the December National Association of Insurance Commissioners (NAIC) Fall National Meeting, the Surplus Lines Working Group adopted changes to the IID Plan of Operation. The updated Plan of Operation incorporates, among others, the changes noted in our October posting below. The 2023 Plan of Operation is now available at the “Documents” tab of the Surplus Lines Working Group home page.”
On October 19, 2022, the National Association of Insurance Commissioners (NAIC) Surplus Lines Working Group exposed proposed changes to the International Insurers Department (IID) Plan of Operation applicable to insurers domiciled outside the U.S. (alien) participating in the U.S. insurance market.
Read MoreLocke Lord and the Association of Corporate Counsel – CT Chapter will host a complimentary webinar titled “Developments in State Privacy Requirements for Connecticut Businesses” on December 14, 2022.
Read MoreThe Texas Department of Insurance (“TDI”) adopted a new group capital calculation filing requirement that is effective on November 7, 2022. The new rule, found in 28 Texas Administrative Code §7.215 (“Section 7.215”), is based on the National Association Insurance Commissioners (“NAIC”) model regulation that requires an insurer’s ultimate control person in an insurance holding company system to file a group capital calculation concurrently with the insurer’s annual registration (Form B).
Read MoreOn October 13, 2022, the Illinois Department of Insurance (the “Department”) issued Company Bulletin 2022-16 (the “Bulletin”). The Bulletin is addressed to all domestic insurers and advises that the Department will now participate in the National Association of Insurance Commissioners Climate Risk Disclosure Survey (the “Survey”).
Read MoreOn October, 17, 2022, the National Association of Insurance Commissioners (NAIC) Surplus Lines Task Force held an interim meeting to discuss, among other agenda items, the draft changes to the Nonadmitted Insurance Model Act (#870). The Drafting Group presented the draft model to the Task Force on May 23 and the Task Force formally exposed the model for a 60-day public comment period that ended on July 21st.
Read MoreLocke Lord is a proud sponsor of The Insurance Forum on November 2, 2022 in Chicago. The program is offered in person and virtually. Locke Lord Partner Patrick Byrnes will moderate, and Senior Counsel Kenneth Suh and Associate Alexander Cox will serve as panelists, for “BIPA – The Familiar Face of Biometric Data Regulation.”
Read MoreLast month the NAIC Capital Markets Bureau issued a Special Report finding that despite an in increase in the number of private equity (“PE”) owned U.S. insurers, investment volume held by PE-owned insurers declined as of year-end 2021. The NAIC Special Report is timely coming off a Senate Banking Committee hearing earlier in the month in which some members expressed concern at the rapid expansion of PE firms into the insurance space, particularly through M&A activity. Some members have expressed concern that PE firms are less risk-averse than traditional insurance companies.
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