The National Association of Insurance Commissioners (NAIC) has released a request for proposals (RFP) for a vendor to model expected losses on approximately 7,500 commercial mortgage-backed securities (CMBS) as of Dec. 31, 2010. This process will determine the NAIC designations utilized by insurance companies to calculate the solvency reserves required to cover their CMBS holdings.
Late last year, the NAIC used a similar method to establish NAIC designations for more than 21,000 residential mortgage-backed securities (RMBS) owned by U.S.-domiciled insurance companies.
‘State regulators believe that adding this tool will improve our view of structured securities and our industry,’ says NAIC President and West Virginia Insurance Commissioner Jane L. Cline. ‘As we decide to extend this type of treatment to CMBS, we will again look to partner with an established leader in the field."
Responses to the RFP are due by Aug. 11, and it is anticipated that a vendor will be selected by Sept. 3. Click here to view the RFP.