NAIC TARGETS “NEW NORMAL” Regulators outline accomplishments in Report to the industry
NAIC Releases 2022 Annual Report
National Association of Insurance Commissioners (NAIC) presented its 2022 Annual Report. “Conquering the New Normal Together,” to share how the NAIC successfully overcame pandemic-era challenges to further its state-based agenda. According to the report, in 2022 the NAIC enhanced connectivity among its staff and Members, leaned forward on emerging issues, accelerated investments in technology, and rallied its internal team. The NAIC achieved all of this while helping Members protect consumers and remain solvent. The report details accomplishments in these areas. Excerpts follow.
Leaning Forward on Emerging Issues
Key Policy Achievements
In 2022, we marked the return of significant in-person dialogue with Washington, DC-based stakeholder groups, members of Congress and federal officials, state association partners, and key bilateral jurisdictions. We increased our collaboration and cooperation with our legislative colleagues at the National Council of Insurance Legislators (NCOIL), resulting in new opportunities to advocate for our state-based system. NAIC leadership held a series of dialogues with industry and consumer stakeholders that promoted greater transparency and understanding of NAIC initiatives. As a result of these engagements, the NAIC continued to be effective in influencing policy at domestic, federal, and international levels.
Other key achievements include:
• Conducted a virtual fly-in reaching nearly 200 congressional offices to highlight our priorities for the year.
• Held our first in-person International Insurance Forum since the COVID-19 pandemic began, reuniting more than 300 regulators and stakeholders from around the globe in Washington, DC to discuss current developments.
• Educated congressional committee leadership on private equity-owned insurers.
• Re-engaged in person with key bilateral partners and the International Association of Insurance Supervisors (IAIS).
• Advanced at the IAIS our approach for comparability of our aggregation method through strong advocacy at the International Insurance Forum and focused negotiations.
• Contributed to new initiatives at various international standard setting bodies our US-based approach on key emerging issues like climate risk, financial security, and innovation and technology.
• NAIC Leadership wrote to Congress on behalf of Members to share its perspective on Standard & Poor’s (S&P’s) ratings proposal and correct any misperception of the NAIC’s viewpoint. S&P ultimately relented in its efforts to move forward with its model.
• Engaged with Congress on behalf of Members to revisit the federal law that limits the authority of states to oversee Medicare Advantage, resulting in a national conversation on Medicare Advantage marketing.
• Advocated for the Empowering States to Protect Seniors from Bad Actors Act (H.R. 5914/S. 3529), which would establish a senior investor protection grant program at the U.S. Securities and Exchange Commission (SEC) to support state regulatory efforts to target senior fraud. The U.S. House of Representatives overwhelming approved the bill amidst an otherwise divided Congress.
• Promoted state-based efforts addressing climate risk and resiliency and actively resisted unnecessary federal intervention and oversight through a series of Member letters and engagements with key federal agencies.
• Successfully complied with the U.S./European Union (EU)/ United Kingdom (UK) Covered Agreements and avoided federal preemption through a coordinated multi-year effort and adoption of the Credit for Reinsurance Model Law (#785) by all 56 Members.
• Participated in two key congressional hearings to highlight our state- based approaches on key emerging issues:
• Commissioner Kathleen A. Birrane (MD) advocated for state-based approaches to private equity, artificial intelligence (AI) and big data, and climate risk, among other issues during a U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing.
• Director Chlora Lindley-Myers (MO) testified before a U.S. House of Representatives’ Financial Services Subcommittee on the NAIC’s state-based efforts to promote DE&I in the insurance sector.
New Avenues to Insurance Careers (N.A.I.C.) Foundation
As part of our effort to proactively address emerging issues, our Members saw a specific solution to remedy the talent and diversity gap in the insurance sector. Under our Officers’ leadership, we created the New Avenues to Insurance Careers (N.A.I.C.) Foundation, which will provide internship and scholarship opportunities for underrepresented communities and improve access to careers with state insurance departments and the insurance industry.
