National Association of Insurance Commissioners (NAIC) Launches State-Based Insurance Regulation Education Campaign

Above:  NAIC CEO Ben Nelson Announced the Launch of a State-Based Insurance Regulation Education Campaign Today

 

The National Association of Insurance Commissioners (“NAIC”) announced today, July 16, 2014, that it has launched “Protecting the Future,” an educational initiative about the indispensable role that state-based insurance regulation plays in strengthening the U.S. economy.

To view the project’s new Web page go to:  www.NAIC.org/protectingthefuture

The 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.  It highlights the benefits state-based insurance regulation provides to American consumers, employers and taxpayers.

In a press release issued today, the NAIC explained, “It is a critical time for state regulators as some federal officials and global regulators are seeking unprecedented authority over American insurance markets, including the imposition of bank-centric regulation on insurance companies.”

According to the NAIC, “States have effectively regulated America’s insurance companies for nearly 150 years. Even during the 2008 financial crisis – as the federal banking and mortgage regulatory regimes collapsed – the state-based insurance regulatory system performed well, protecting policyholders and helping to prevent an even deeper economic downturn.”

“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,” said NAIC’s CEO Ben Nelson,.  “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.”

The NAIC notes that, each year in the United States, businesses, consumers and governments spend over $1.7 trillion on insurance products from more than 6,000 different insurance companies, making up over 34 percent of premium volume worldwide.  State regulators, in collaboration through the NAIC, supervise these transactions and ensure that American markets, businesses and consumers are protected.

“Our proven system continues to effectively evolve as the states respond to emerging issues, new products, innovations and changes in the financial services landscape,” said NAIC President and North Dakota Insurance Commissioner Adam Hamm. “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.”

Of 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. 

“Protecting the Future” is intended to be a sustained, broad-based educational initiative that will include:

–       Outreach to key stakeholders in Washington, Brussels and at the FSB
–       Events to engage thought leadership on emerging issues
–       Social media

“Through this new initiative, we are going to make sure the compelling value proposition of state-based insurance regulation is well understood by policymakers, business leaders, consumer advocates and economic thought-leaders,” said Nelson.

 

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