Rating Changes for Insurance Industry?

This is news!

The insurance industry regulators have determined that MBS ratings do not reflect the economic value of securities. The NAIC is moving to use a metric that demonstrates that “toxic” ratings don’t have to mean “toxic” bond.

Instead of a blanket “toxic” label, the insurance regulators are asking the right question: How toxic?

Let’s count the dollars at risk, instead of using a broad rating value of “toxic.”

This move will more accurately reflect the value of portfolio holdings.

[$$] Insurers Take Step Away From Raters – Wall Street Journal, October 15, 2009