NAIC softens its rating overhaul. Insurers still don’t like it

Insurers worry that the regulatory body could override credit ratings without sufficient explanation

A revised proposal that would allow the National Association of Insurance Commissioners to override credit ratings is facing renewed scrutiny from industry.

The updated proposal spells out the process the NAIC would use to apply its own credit rating to a security held by a state-regulated insurer.

Insurers and trade associations are calling for greater transparency over the type of assets targeted by the proposal, and the methodology used by the NAIC’s Securities Valuation Office (SVO) to rate