NAIC Reveals 5 Regulatory Priorities for 2021

The National Association of Insurance Commissioners (NAIC) recently announced its strategic priorities for 2021. NAIC members decide on the priorities and discuss potential workplans annually following the announcement of the organization’s Officer and Committee appointments.

“This year marks 150 years of NAIC members being unified in their commitment to protect consumers and ensure fair, competitive, and healthy markets,” said NAIC President and Florida Insurance Commissioner, David Altmaier. “In 2021, we will continue this tradition and find ways to advance solutions that help foster a robust and responsive insurance sector that provides consumers with safe and reliable insurance products.”

The NAIC 2021 priorities are, in no specific order:

COVID-19 — In 2021, the NAIC will continue its 2020 “Priority One” – an overarching initiative designed to support NAIC members in their response to the ongoing pandemic and its impact on consumers and insurance markets. The insurance industry has a key role to play in supporting customers and the economy through the ongoing crisis and the recovery. Insurance regulators will continue to analyze data, adapt to evolving situations, and develop the tools necessary to ensure that consumer protection keeps pace with the changes brought on by this virus.

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.

Long-Term Care Insurance (LTCI) — State insurance regulators will continue ongoing efforts to improve the consistency around LTCI rate review processes; examine insurer reserve adequacy; facilitate innovative product offerings; engage with federal policymakers on LTCI policy; and educate consumers on LTCI products and alternative benefit options.

Race & Insurance — The insurance regulatory system, and insurance in general, reflects the society it protects. Through our special committee on race and insurance we will continue to ensure the availability and affordability of insurance products for persons of color and historically underrepresented groups and promote diversity and inclusion within our sector.

Climate Risk & Resiliency — The NAIC is committed to working with state, federal and international stakeholders to coordinate climate-related risk and resiliency assessments, disclosures, and evaluation initiatives so that each state has the information, policies, and tools that promote resiliency and ensure stable insurance markets for its citizens.

Consumer Data Privacy — Regulatory concerns about the use of consumer data by a variety of commercial, financial, and technology companies are increasing. We will continue to review, monitor, and update current state insurance privacy protections to ensure that consumer data privacy is protected.

Big Data/Artificial Intelligence — State regulators continue to examine the benefits and potential unintended consequences arising from the use of non-insurance consumer data. With the adoption of AI Principles for the insurance industry, we are committed to developing regulatory practices that monitor and oversee the industry’s compliance while still promoting pro-consumer innovation.

About the NAIC: As part of our state-based system of insurance regulation in the U.S., the Washington, D.C.-based 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. For more information, visit www.naic.org.