Key takeaways:

• The NAIC discussed proposed revisions to the Annual Financial Reporting Model Regulation which incorporates a new section for “Internal Audit Function Requirements.” The draft was re-exposed for comment following some changes with the goal of finalizing the revisions by early 2014.
• The NAIC discussed a new proposed Corporate Governance Annual Filing Model Act and draft Guidance Manual. Insurance industry objections to the Guidance Manual were rejected and the drafts were re-exposed for further comment.
• Spirited discussions took place regarding captive insurers including (1) the appropriate standard for XXX/AXXX ceded risks, and (2) whether captive insurers operate in multiple states and thus are subject to the NAIC accreditation standards applicable to traditional insurers.
• A first meeting of a working group dedicated to considering private equity ownership of insurers took place with a presentation by Apollo, a private equity fund, and Athene, its subsidiary, which own several U.S. life insurers.