Supplemental Investment Risk Interrogatories (All Insurers)
Effective for 12/31/20, the NAIC Blanks Working Group modified the following Supplemental Investment Risk Interrogatory (SIRI) questions:
- Question 13 - 10 largest equity interests – Reporting entities should include equity funds that qualify individually as one of the largest equity interests, and clarifies when a look-through of investments in the shares of non-diversified funds are necessary.
- Question 14 - Nonaffiliated, privately placed equities and ten largest fund managers – Instructions were modified to indicate a response is always required for questions 14.06 through 14.15 (ten largest fund managers), regardless of how question 14.01 is answered. Questions 14.06-14.15 requires a reporting entity to split all funds by fund manager, as well as by diversified/non-diversified classification in accordance with the Investment Company Act of 1940. Funds to be included in this table are all “funds” regardless of the type (i.e. private placement, mutual funds, exchange traded funds, closed-end funds, money-market mutual funds, etc.).
Reporting entities (P&C and Health only) should also review General Interrogatory #29 for consistency in reporting diversified/non-diversified funds.
NAIC Designation Modifier added to Investment Schedules (All Insurers)
Also effective for 12/31/2020, a new NAIC designation modifier will be added to the NAIC Designation column for Schedule D, DL, and BA to accommodate the NAIC Designation Category granularity framework adopted by the Valuation of Securities (E) Task Force. The combined NAIC designations and NAIC designation modifier will be referred to as the NAIC Designation Category. Instead of having only 6 NAIC Designations in the past, there will now be 20 NAIC Designation Categories. This additional level of credit risk provides additional insight into the risk of a reporting entity's investments.
With the addition of the NAIC designation modifiers, there is a potential risk if a reporting entity chooses to self-designate and arrives at a different designation than the NAIC's Automated Valuation Service (AVS), such as an improper impact on the RBC calculation. If it unknown is there will be any penalties imposed by regulators at this time. The NAIC's Valuation of Securities database is the official source for NAIC designations and includes all nine of the Creidt Rating Provider (CRP) ratings. A subscription to the Automated Valuation Service (AVS) can be purchased from the NAIC.
Below is a chart with the new NAIC Designations that includes the new Modifiers and how that relates to the ratings of the various Credit Rating Providers.
Strohm Ballweg Recruiting
The landscape of recruiting looked quite a bit different this year! Challenges aside, we’ve had the pleasure of meeting many talented students through virtual career fairs. Since we couldn’t meet face-to-face this year, check out our latest video to get a taste of what Strohm Ballweg has to offer!
Strohm Ballweg New Employees
We have an exciting group of hires to announce! Brian Bergman joined us in September as an Underwriting Technician for Municipal Property Insurance Company (a company Strohm Ballweg provides outsourcing services to). Strohm Ballweg will also have interns joining us throughout 2021-2022: Evan Oppermann (Edgewood) will be returning for Spring 2021, Hannah Caygill (UW-LaCrosse) and Jacob Frey (UW-Whitewater) will be interning in Summer 2021, and Meghan O’Connell (UW-LaCrosse) is set to join us in Spring 2022.