WASHINGTON, D.C. (PRWEB) August 10, 2015
The American Insurance Association (AIA) will push for narrow definitions of price optimization to be employed by state regulators at the National Association of Insurance Commissioners’ (NAIC) 2015 Summer Meeting. The NAIC will be meeting in Chicago, Illinois from August 15-18.
On August 15, the Casualty Actuarial and Statistical (C) Task Force is scheduled to finalize its Price Optimization White Paper. The document seeks to provide state regulators with guidance regarding the practice of price optimization and the ways data may be used by insurers to underwrite risk. AIA has supported the development of the White Paper and submitted feedback on each draft of the document. In comments to the Task Force, AIA has pushed for guidance that would result in a narrow definition of price optimization being employed by state regulators.
“AIA looks forward to the White Paper being finalized and asks that the NAIC adopt a limited definition of price optimization,” said Lisa Brown, AIA senior counsel and director, compliance resources. “The White Paper should ensure that insurance carriers have the ability to retain current and long standing flexibility to use traditional and non-traditional factors to establish rates that are consistent with accepted actuarial standards.”
Angela Gleason, AIA associate counsel, will testify before the Privacy Disclosures (D) Working Group at its meeting on August 15. The Working Group has been charged with reviewing a model regulation to assess whether there should be an alternative electronic delivery option for privacy notices by financial institutions to consumers. It is also evaluating the use of the Gramm-Leach-Bliley Act Model Privacy Form (Model Form) and the existing safe harbor structure for sample privacy notices in the NAIC’s Privacy of Consumer Financial and Health Information Regulation. AIA supports electronic delivery of privacy notices and firmly believes the safe harbor structure for sample privacy notices should not sunset but rather coexist with a safe harbor for the Model Form.
“AIA is encouraged by the Working Group’s consideration of electronic privacy notices,” said Gleason. “As society becomes increasingly dependent on electronic communication, it is only natural that policyholders should be given the option to receive privacy notices electronically.”
The Cybersecurity (EX) Task Force will receive an update on August 16 from the IT Examination Working Group regarding the status of cyber related revisions to the Financial Condition Examiners Handbook Guidance. The Working Group has proposed amendments to the Financial Examiners Handbook to strengthen its exam guidance regarding cybersecurity considerations. “The process for considering amendments to the Handbook has been one of considerable collaboration and AIA thanks the Working Group for their open and meaningful engagement,” said Gleason. “We will review the latest proposed revisions, which have addressed many of AIA’s concerns. AIA understands that the existing Handbook addresses concerns related to the protection of sensitive information reviewed during an exam and will take a closer look to ensure we are not missing any unintended gaps.”
The Blanks (E) Working Group will meet on August 15 and debate the addition of a Terrorism Risk Insurance Supplement to the Annual Financial Statement. In June, the NAIC released the draft Supplement to allow industry an opportunity to provide comments.
“It is in the collective interest of state regulators, the Federal Insurance Office, and industry to ensure that the Treasury study or other data calls reflect relevant and accurate information that demonstrates the continued need for development of a private terrorism insurance market,” said Adam Kerns, AIA assistant general counsel. “AIA firmly believes that the NAIC approach would best be served by first determining the objectives of adding the Supplement.”