Diana Gallinger, CPA
Diana helps insurers improve and streamline their investment accounting and reporting. Diana specializes in ensuring accurate and proactive communication of NAIC investment-related updates internally, and to Clearwater clients. She has a bachelor’s in accounting and finance from Boise State University.
At the NAIC Summer 2016 National Meeting, the Blanks Working Group (BWG) focused on collateral type revisions.
The Investment Reporting Subgroup discussed reducing the number of collateral type options available on Schedule D – Part 1 from 21 to 8-10. The 21 distinct categories are not consistently reported by Industry, nor are they heavily utilized by regulators. The proposed revisions would condense many of the collateral types into either “individual” or “commercial” obligations and eliminate the need for specific asset type reporting (credit cards, auto, student loans, aircraft, etc.).
During the revision of the proposed 8-10 collateral types, members of Industry pointed out that residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) are reported as a NAIC-specific category and the collateral type designation for those securities is redundant and unnecessary.
The Investment Reporting Subgroup referred this item to the Valuation of Securities Task Force (VOSTF). The VOSTF indicated that there are no concerns with the proposed revisions and referred the issue back to the Investment Reporting Subgroup for further work.