US insurance regulators back down on credit ratings scrutiny

US insurance regulators: US insurance regulation is primarily conducted by state authorities coordinated through the National Association of Insurance Commissioners (NAIC), which develops supervisory standards for insurer investments and capital treatment. In the reported development, regulators appear to be moderating or revising their proposed scrutiny of credit-rating providers after receiving substantial pushback from insurers, rating agencies, and industry groups, while retaining broader oversight of private-credit risks. Industry response: Insurers, rating firms, and trade groups challenged the proposed credit-rating oversight framework, prompting regulators to review comments before advancing a revised draft. Ongoing oversight: Recent NAIC measures still allow regulators to flag certain private ratings for review and request supporting information about how those ratings were determined. Regulatory approach: The NAIC’s broader framework emphasizes transparency, due diligence, and review of whether private credit ratings accurately reflect underlying investment risk rather than an outright restriction on insurers’ private-asset investments.