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BRIEFS, LETTERS, MOUs, TESTIMONY & SPEECHES  |  CIPR EVENTS

Studies and Special Reports

Government Relations CIPR Statistics Capital Markets Special Report NAIC Store: Journal of Insurance Regulation

The CIPR conducts in-depth research on insurance issues to provide useful information to state regulators, policyholders, consumer advocates, industry members and other state, federal and international policymakers. This page provides access to studies, special reports, and articles on a wide range of insurance regulatory topics and concerns. Occasionally, this page will include documents from non-NAIC sources posted with the author's permission. These are provided for informational use only and their inclusion does not represent NAIC endorsement of the positions and/or facts presented by them.

Click here for an Index of available White Papers from the NAIC Store.

Current Studies

The State of Long-Term Care Insurance: The Market, Challenges and Future Innovations
NAIC, Center for Insurance Policy and Research
May 2016


Upcoming Studies

Private-Label Mortgage Securitization Market Challenges and the Implications for Insurers and Insurance Regulation
NAIC, Center for Insurance Policy and Research

In this study the authors picked up from where the 2012 CIPR study left off with the private-label residential mortgage-backed securities (RMBS) market still in the doldrums four years later. As securitization has since bounced back in most other asset classes, the key question the study attempts to answer is why the experience of the residential mortgage securitization market has been so dramatically different.

This 2016 study bring together seasoned mortgage securitization professionals and NAIC analysts to provide an update on the continuing efforts to reinvigorate the private-label securitization market and examine the persistent challenges in addressing the structural deficiencies that have severely eroded the trust of all market participants.

The primary purpose of this study is to discuss the challenges still facing mortgage securitization, to detail U.S. insurers' continuing investment participation in the RMBS market and to present how state insurance regulators, through the NAIC, analyze and evaluate insurance companies' investments.

This study helps serve a dual purpose regarding the work of the NAIC Structured Securities Group (SSG): first—describe the philosophical and operational process the SSG follows to analyze RMBS and, second, how this process has changed over the years.

This study is scheduled to be released in the last quarter of 2016.

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Flood Risk and Insurance
NAIC, Center for Insurance Policy and Research

Floods are the most common and most destructive natural catastrophe in the United States. All 50 states have experienced catastrophic floods or flash floods in the past five years, according to Floodsmart.gov. The damage from a flood is not covered under a standard homeowner's policy but rather by a special policy that is federally backed by the National Flood Insurance Program (NFIP) and available for residential and commercial properties.

Floods are the most common and most destructive natural catastrophe in the United States. All 50 states have experienced catastrophic floods or flash floods in the past five years, according to Floodsmart.gov. The damage from a flood is not covered under a standard homeowner's policy but rather by a special policy that is federally backed by the National Flood Insurance Program (NFIP) and available for residential and commercial properties.

NFIP's growing debt has highlighted a number of structural weaknesses in the program and increased concerns about its burden on taxpayers. The question, however, is whether the problems troubling the NFIP can be addressed to the extent that flood insurance becomes a viable market for profit-driven private insurance companies.

This study will examine the historical experience with flood events and losses and the factors affecting future losses. It will also detail the current flood insurance regime focusing on NFIP and the limited role of private insurance and it will explore policy alternatives and potential future flood insurance systems. It will focus on private insurers' appetite and ability to write flood insurance and attempt to address the question whether the private sector and government flood insurance can coexist.

This study is expected to be released ahead of the Fall National Meeting.

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Captive Insurance Use and Regulatory Solutions
NAIC, Center for Insurance Policy and Research

Captive insurance companies have been in existence for over 100 years. However, over the past 30 years, there has been significant growth in the captive market. Today, there are almost 7,000 captives globally compared to roughly 1,000 in 1980. Although historically, captives were used by a variety of business to self-insure risks, their use has expanded significantly in recent years to include life insurer-owned captives used for reserve financing.

While captive regulation as applied to traditional captives made sense in the context of a commercial business self-insuring its own risks, it sparked serious concerns among regulators regarding transparency, disclosure and consistency when applied to individual policyholder risks backed by life insurers.

This study provides a review of the evolution and growth of captives and an analysis of their use by commercial companies as self-insurance as well as life insurers to manage capital and reserves. While increased regulatory scrutiny of captive arrangements added transparency and minimized risks, the use of captives, particularly by life insurers is still a critical issue among state regulators. The aim of the study is to explore the evolving use of captives, the choice of offshore and onshore domiciles, present the existing state regulatory framework, as well as the remaining issues and concerns, and solutions.

This study is expected to be completed and published in the first quarter of 2017.

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Past Studies

Usage-Based Insurance and Vehicle Telematics: Insurance Market and Regulatory Implications
NAIC, Center for Insurance Policy and Research
March 2015

CIPR Study on the State of the Life Insurance Industry: Implications of Industry Trends
NAIC, Center for Insurance Policy and Research
August 2013

Financing Home Ownership: Origins and Evolution of Mortgage Securitization, Public Policy,
Financial Innovations and Crises

NAIC, Center for Insurance Policy and Research
August 2012

Distinguished Scholar Study: Solvency II Calibration
Thomas Herzog, Ph.D., Distinguished Scholar
NAIC, Center for Insurance Policy and Research

Systemic Risk and the U.S. Insurance Sector
Mary A. Weiss, Ph.D., Distinguished Scholar
NAIC, Center for Insurance Policy and Research

The Economic Crisis and Lessons from (and for) U.S. Insurance Regulation
Therese M. Vaughan, Ph.D.
JIR Articles do not necessarily reflect the opinion of the NAIC or its Members.

Preservation of State-Based Insurance Regulation: An Ongoing Challenge in the U.S. and the European Union
Robert W. Cooper., Ph.D.
JIR Articles do not necessarily reflect the opinion of the NAIC or its Members.

The Implications of Solvency II for U.S. Insurance Regulation
Therese M. Vaughan, Ph.D.

The Financial Crisis, Systemic Risk, and the Future of Insurance Regulation
Scott E. Harrington, Ph.D.
(Posted with permission from the National Association of Mutual Insurance Companies)

Future of Business Disciplines, Regulation and Oversight of the U.S. Insurance Marketplace
Mark Boozell
(Posted with permission from the Professional Insurance Agents Insurance Foundation)

History of State Insurance Regulation
NAIC