The original 2020 reinsurance disclosure updates were adopted in SSAP No. 61R through agenda item 2017-28: Reinsurance Risk Transfer for Short-Duration Contracts. Following the 2020 adoption, several indistinct areas were observed by both auditors and preparing parties, who subsequently requested further clarification. The 2022 adoptions streamline the scope of the original disclosures and clarify certain content requirements.
So, What’s the Rub?
- The property & casualty reinsurance supplemental schedules, including one P&C disclosure, are not comparative, and only focus on the current reporting period. Accordingly, interested parties questioned the comparative nature of the life reinsurance model. NAIC staff confirmed this inquiry and suggested modifications to the life reinsurance supplemental information to only apply to reinsurance agreements effective in the current period, thereby removing references to comparative disclosure;
- Further, revisions were made to clarify that information shall reside in the supplementary schedules unless no contracts were acknowledged as being subject to the disclosures. If no contracts were recognized, the disclosure noting no such exposure could reside in either the audited note or the supplementary schedules;
- Reference to assumed reinsurance was removed from the scope of the initial SSAP 61R disclosure. The original structure of SSAP 61R was based upon the infrastructure of SSAP 62R – Property and Casualty Reinsurance, which only references ceded reinsurance contracts. Consequently, the change was made to provide consistency with the P&C promulgation.
Keep an eye on this as it is effective for 2021 year-end reporting disclosures.