06.27.26
US Insurance Rulemaker Suspends Investment Risk Designations After Cyberattack
by: Lee Harris
The National Association of Insurance Commissioners has suspended assigning investment risk designations after a cyberattack, claimed by the ShinyHunters hacking group, compromised credit rating data from agencies including Moody’s, S&P, KBRA and others. These ratings and designations are important to U.S. life insurers because they help determine how much capital they must have to meet their future obligations to policyholders. The incident comes amid heightened regulatory scrutiny over insurers’ use of credit ratings — particularly private letter ratings — which critics say may overstate asset quality and enable capital rule arbitrage, potentially leaving insurers with insufficient reserves to meet policyholder obligations.
Read the full article on Financial Times