Today,theNational Association of Insurance Commissioners (NAIC) announced its 2024 strategic priorities. NAIC Members annually finalize the priorities and discuss potential workplans afterassigning committee responsibilities.
“Built on the foundation of coordination, cooperation, and collaboration, the state-based insurance regulatory system is well equipped to keep taking on the shared challenges and responsibilities of a world more interconnected than ever before. The NAIC’s regulatory priorities for 2024 reflect our commitment to pursuing innovative and effective solutions to the most pressing issues affecting consumers, the insurance sector, and markets,” said NAIC President and Connecticut Insurance Commissioner Andrew N. Mais.
NAIC 2024 Priorities (in alphabetical order)
Climate Risks/Natural Catastrophes and Resilience: Mitigation, consumer education, and closely working together remain central to tackling the threat posed by increased climate risks. The NAIC’s proposed National Climate Resilience Strategy for Insurance provides for a unified approach, data collection and utilization, and resiliency actions, including the launch of a comprehensive NAIC Climate Risk Dashboard to measure and evaluate protection gaps. Among its actions, the NAIC will also seek to create new resilience tools, advocate for pre-disaster mitigation funding, and develop scenario analysis resources for state regulators.
Insurer Financial Oversight and Transparency: Aiming to enhance oversight and adapt to evolving investment strategies, the NAIC’s “Framework for Insurer Investment Regulation” will reduce blind reliance on credit rating providers and modernize the role of the NAIC’s Securities Valuation Office. Other strategic items include developing a modernized Economic Scenario Generator, as well as continuing to implement the Asset Adequacy Testing framework (AG 53) to bring greater transparency and precision to the assessment of cash flows for insurers’ structured securities holdings.
Marketing of Insurance Products: State insurance regulators will once again take a multipronged approach to protecting consumers from deceptive and misleading insurance marketing. In addition to coordinating with Congress and federal agencies, state insurance regulators will strengthen information sharing among their departments and develop a tool hosted at NAIC.org for consumers to check insurance producers’ licenses, with additional information available on state insurance department websites. Other steps include modifying NAIC model laws to grant regulatory power over health insurance lead generators. To further assist consumers and help close the protection gap for older adults, the NAIC continues to call for Congress to restore states’ regulatory authority over the Medicare Advantage market.
Race and Insurance, Financial Inclusion, and Protection Gaps: These interrelated, multifaceted issues span personal, political, and public policy realms as they affect consumers, insurance regulation, and the industry. Dedicated to leading in each of these critical areas, the NAIC will continue to identify related issues in 2024, focus on closing protection gaps and widening financial inclusion, receive updates, and recommend statutory or regulatory changes.
Use of AI by Insurers and Cyber Risk: The rapid development and use of artificial intelligence and other technologies create opportunity but also raise key questions regarding consumer privacy, cyber risk, carrier needs and capabilities, and the complexity of the regulatory landscape. The NAIC’s Innovation, Cybersecurity, and Technology (H) Committee positions the organization on the front lines of this field. In 2024, among other items, the NAIC’s agenda includes facilitating educational and engagement opportunities, leading key projects and efforts to monitor and support adoption of the Model Bulletin on theUse of Artificial Intelligence Systems by Insurers, researching and monitoring trends, proposing a regulatory framework for overseeing third-party data and predictive models, and completing the development of the Cybersecurity Event Response Plan. Through the Privacy Protections (H) Working Group, state insurance regulators are focusing on the future of safeguarding consumers’ sensitive information through modernized and enhanced privacy protections.
In addition to our strategic regulatory priorities, NAIC Members will continue to implement and execute on critical model law and model bulletin adoption, work toward comparability for our Aggregation Method internationally, and focus on enhanced Member service and connectivity through our State Connected strategic plan.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.
