The US insurance industry’s standard setter has begun to examine credit risks linked to data centre projects, which are increasingly showing up in insurers’ investment portfolios.
The National Association of Insurance Commissioners — the organisation that seeks to unify state-level insurance regulations — was reviewing insurers’ data centre holdings and whether the credit ratings underpinning these projects were justified, according to people familiar with the matter.
While the US insurance industry is regulated on a state level rather than by the federal government, the NAIC’s guidelines are closely followed by individual state regulators and often enacted through state legislation.