The National Association of Insurance Commissioners (NAIC) is developing a proposal to form an insurance company rating agency of its own. As proposed the new rating entity would be an independent, nonprofit affiliate of the NAIC with its own governing board and structure, said NAIC President-Elect Roger Sevigny.

The NAIC is moving to retain a consultant to research whether it has the legal standing to form a Nationally Recognized Statistical Rating Organization. The association would then put a proposal together and apply to the U.S. Securities and Exchange Commission for recognition, said Sevigny, who chairs a working group investigating the issue. He said he plans to present a more detailed proposal at the NAIC’s next quarterly meeting in December.

NAIC May Create a Rating Agency (National Underwriter 10/20/08)

October 29, 2008