NAIC Accreditation Standards for Risk Retention Groups

The NAIC accreditation program requires that Captive RRG examinations commencing on or after January 1, 2011, follow the risk-focused surveillance approach.  District of Columbia regulators met with the Captive Insurance Council of the District of Columbia (CIC-DC) on January 18, 2011, to discuss changes that are expected to impact Risk Retention Groups in their venue.  The DISB recommends the following preparations by the RRG for a risk-focused examination:

• Ensure good corporate governance and control structures.
• Document corporate governance and controls.
• Coordinate with auditors; help examiners leverage CPA workpapers.
• Help examiners to better understand the company, not just understanding prior filing and support documentation.
• Become familiar with the Handbook and Process.
• Help facilitate the exam.

What is your opinion regarding risk-focused exams in your venue?  Will there be any impact to your RRG due to the new NAIC accreditation standards?  Let us know.