BlackRock Solutions, the risk management division of BlackRock, has been selected by the National Association of Insurance Commissioners (NAIC) as the sole vendor to conduct financial modelling for the next three years for both commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS).
The NAIC has used BlackRock Solutions to perform financial modelling of CMBS since 2010. Pimco had previously provided financial modelling services for RMBS. The latest competitive rebidding process began in February.
The modelled results of RMBS and CMBS, when compared with insurers' reported values, determine an insurer's risk-based capital requirements.