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ARTICLE · 06 MARCH 2025

NAIC Working Group Launches Project Relating To Reciprocal Management Fees

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The NAIC Risk-Focused Surveillance (E) Working Group (RFSWG) met via teleconference on February 26, 2025 and initiated a new project relating to the management fees paid...

United StatesInsurance
Lawrence Hamilton
Lawrence Hamilton
Vikram Sidhu
Vikram Sidhu
Jared Wilner
Jared Wilner
Yuliya Feldman
Yuliya Feldman
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AT A GLANCE

The NAIC Risk-Focused Surveillance (E) Working Group (RFSWG) met via teleconference on February 26, 2025 and initiated a new project relating to the management fees paid by reciprocal interinsurance exchanges ("reciprocals") to their attorneys-in-fact.

BACKGROUND

The new project was launched in response to a referral from the NAIC's Chief Financial Regulator Forum, which met at the NAIC Fall National Meeting in November 2024. The Chief Financial Regulator Forum is a regulator-only group that meets in closed sessions and consists (as its name implies) of the chief financial regulators from each state's insurance department. The referral took the form of a memo from the chair of the Chief Financial Regulator Forum to the Chair of the RFSWG. The memo was included as Attachment B to the materials for the February 26 open meeting of the RFSWG and is available here.

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