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ARTICLE · 25 JUNE 2026

NAIC Task Force Adopts Key Recommendation On Interest Maintenance Reserve

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Life and health insurers in the U.S. should take note of a development from the National Association of Insurance Commissioners (NAIC) regarding their ability to reduce collateral requirements for ceded reinsurance under certain circumstances.

United StatesInsurance
Daniel Rabinowitz
Daniel Rabinowitz
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Life and health insurers in the U.S. should take note of a development from the National Association of Insurance Commissioners (NAIC) regarding their ability to reduce collateral requirements for ceded reinsurance under certain circumstances. At a virtual meeting on June 22, the NAIC’s Reinsurance Task Force (RTF) adopted a recommendation that derecognizing net negative Interest Maintenance Reserve (IMR) should not reduce such collateral requirements. RTF was responding to a request from another NAIC body, the Statutory Accounting Principles Working Group (SAPWG), for comments on this issue. This recommendation could impact life reinsurance activity in a changing interest rate environment.

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