trending Market Intelligence /marketintelligence/en/news-insights/trending/snA4rPtGqz9fC79jIiMS8g2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

NAIC proposes rule change to close loophole around related-party investments

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report


Fintech Funding Flows To Insurtech In February

NAIC proposes rule change to close loophole around related-party investments

The National Association of Insurance Commissioners has proposed a rule change that aims to close a loophole that allowed some insurers to mask related-party investments.

The proposed change comes in light of The Wall Street Journal investigation that revealed that Eli Global LLC founder and owner Greg Lindberg had invested some $2 billion of assets from life insurance companies purchased since 2014 into his own businesses. The funds were moved through intermediaries to allow them to be declared as non-related party transactions, something that a Lindberg spokesman told the Journal had been authorized by North Carolina regulators.

The new NAIC proposal would require a judgment on whether a transaction involves related parties to consider "the substance of the agreement and the parties whose actions or performance materially impact the insurance reporting entity under the transaction." The text cited as an example an investment acquired from a non-related intermediary for which the investment return is primarily contingent on the performance of a related party.

It also says "the mere inclusion of a non-related intermediary" should not be used as the basis for concluding that a transaction need not be identified and reported under related-party disclosure rules.

A NAIC spokesperson said in an email that the proposed rule change is something that NAIC "has been working on for a while." The spokesperson added that the NAIC regularly reviews matters and "seeks to provide greater clarity and transparency around its rules and guidance."

Separately, North Carolina Commissioner Mike Causey has been working on proposed legislation, which if approved "would provide protection to policyholders by limiting the amount that may be invested in affiliates to 10% of admitted assets or 50% of policyholder surplus," he said.

Causey said the NAIC's proposed changes "appear to be a good start to closing loopholes."

The NAIC rule change was proposed March 22 and is on the agenda for an April 6 meeting of NAIC's statutory accounting principles working group.