2024 SOA ImpACT Conference - Session 5L: NAIC Bond Definition Update and Implications on Insurers 10.29.24 Recording

The NAIC revamped SSAPs No 26R 'Issuer Credit Obligation', No 43R 'Asset-Backed Securities' and 21R 'Other Admitted Assets' effective 1/1/2025. The definition of a bond was changed to be principles-based rather than based on legal form. Current and future bond holdings will need to be assessed against the frameworks outlined in the revised SSAPs to determine which assets will continue to remain on Schedule D (i.e., in scope of SSAP No. 26R and 43R) and which assets will need to be reclassified to Schedule BA (i.e., in scope of SSAP 21R). By attending this session, attendees will understand the regulatory, financial and operational implications of this change for insurers.