Regulators DEFY Critics, UNLEASH Game-Changing Reinsurance Asset-Testing Rules!

There was a long-expected reinsurance asset testing guideline that a state insurance task force approved on Thursday to initiate the final adoption phase that authorities hope would lead to initial data reporting by April 1, 2026.

The Life Actuarial Task Force (LATF) spent about one and a half years developing the guideline. Fred Andersen from Minnesota Department of Commerce said that the outcome is narrow in scope and disclosure only.

There was a LATF meeting where they considered final word changes and typos before voting to adopt the guideline. The representative from New York abstained with no comment. More votes will be needed at higher-ranking NAIC committees before being sent out for states’ adoption. The first due date for reinsurance asset testing reports is in April according to LATF’s timeline.

‘A full-court press’

During a short four day comment period, Peter Gould wrote a substantive letter. A variable annuity owner, he started joining calls last year as well as participating in debate all through. This made him lament over how only disclosure is done in this guide.

“Insurance industry lobbyists have been working overtime from almost inception of this project, trying to deviate it from its original intent of referring,” Gould added.