On July 16, 2014, the National Association of Insurance Commissioners (NAIC) announced it was launching an educational initiative called “Protecting the Future” to educate the public and other insurance supervisory bodies on the benefits of the U.S. state-based system of insurance regulation. This program is being “deployed in Washington, D.C.; Brussels, the capital of the European Union; and in Basel, Switzerland, the seat of the Financial Stability Board (FSB) for the G-20.”
The announcement notes that “[o]f the 50 largest insurance markets in the world, 24 are U.S. states overseen by members of the NAIC. By collaborating with the 56 state and territorial insurance commissioners, the NAIC streamlines the process of insurance companies bringing products to market, the sale of products in multiple states and the ability of insurance companies to match the needs of a growing and dynamic consumer marketplace.”
Ben Nelson, CEO of the NAIC, stated: “The U.S.’s state-based insurance regulation system has an unmatched track record and can best adapt to meet our future economic and financial challenges. By ensuring soundness, solvency, stability and competition, state-based insurance regulation does more than make insurance markets work — it protects the future for American consumers, employers and the economy as a whole.”
NAIC President and North Dakota Insurance Commissioner Adam Hamm noted: “Our proven system continues to effectively evolve as the states respond to emerging issues, new products, innovations and changes in the financial services landscape. Federal officials need to understand that what works in one state may not work in another. State insurance regulation works because it’s specific to the industry’s unique risks and able to reflect state-specific considerations.”
The NAIC also announced that the NAIC Executive Committee will hire an outside consultant “to assist in a comprehensive review of NAIC governance.” This announcement noted that “the Executive Committee adopted a scope of work that contemplates a broad review of the NAIC’s organizational structure, committee processes and external engagements.” The NAIC has issued a request for proposal to assist with the selection of a consultant and expects the consultant’s work to commence in or about September 2014.