AIA to Emphasize the Effectiveness of Existing Auto Insurance Rating Laws at NAIC Fall Meeting
WASHINGTON, D.C. (PRWEB) November 18, 2015 -- The American Insurance Association (AIA) will emphasize the effectiveness of existing auto insurance rating laws in protecting consumers from unfair and discriminatory practices at the National Association of Insurance Commissioners’ (NAIC) 2015 Fall Meeting. The NAIC will meet in National Harbor, Maryland from November 19-22.
Rachel Jensen, AIA’s associate counsel, will testify before the Auto Insurance (C/D) Study Group on Thursday, November 19. The testimony will focus on existing robust regulatory oversight and insurer commitment to accurate pricing of automobile insurance. Insurers use a variety of rating factors in pricing automobile insurance policies and regulators ensure that rates are not excessive, inadequate or unfairly discriminatory.
“Insurers are focused on deriving what each believes are the most accurate rates for the risks that they are insuring,” said Jensen. “We view the overall health of the market as evidence that statistically correlated rating factors have had a positive effect on the market. Additionally, state statutes contain consumer protections and regulators review every filling to prohibit discriminatory practices.”
On Thursday, November 19, the Casualty Actuarial and Statistical Task Force (C) will consider the adoption of the Price Optimization White Paper, which defines ways insurers use data to underwrite risk. AIA submitted comments commending the task force for narrowing the scope of the White Paper to issues concerning unfairly discriminating ratemaking practices. However, concerns remain.
“The drafting of the White Paper has been a largely successful and collaborative process between the industry and regulators,” said Lisa Brown, AIA’s senior counsel and director of compliance resources. “However, we remain concerned about the inclusion of a ratemaking disclosure form in Appendix D because there is no assurance regarding the confidentiality of sensitive information. In addition, we believe the disclosure form goes well beyond the issue of price optimization.”
The Executive (EX) Committee will consider the adoption of the Cybersecurity Bill of Rights at its meeting on Friday, November 20. The next work stream for the Executive Committee’s Cybersecurity (EX) Task Force is to engage in a model law process to evaluate whether there are any statutory/regulatory gaps related to cybersecurity. “AIA looks forward to working with the Task Force as they engage in this process to bring uniformity to the issue to benefit both consumers and industry,” said Angela Gleason, AIA associate counsel.
On Sunday, November 22, the Executive (EX) Committee/Plenary is expected to approve the development of a group capital calculation. The NAIC Executive Committee had charged the ComFrame Development and Analysis (G) Working Group to determine whether it believed development of a group capital calculation was warranted. AIA provided comments to the NAIC and supports development of an aggregation approach as the most appropriate methodology.
Ben Tomchik, American Insurance Association, http://www.aiadc.org/aiapub/, +1 2028287129, [email protected]
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