WASHINGTON, D.C. (PRWEB) April 06, 2017
At the National Association of Insurance Commissioners (NAIC) Spring 2017 National Meeting, the American Insurance Association (AIA) will emphasize that the NAIC’s new Innovation and Technology Task Force should actively encourage technological advancements that respond to the growing consumer demand for new ways to deliver insurance products and services. AIA will also encourage the NAIC’s Property and Casualty Insurance (C) Committee to continue its reexamination of commercial lines modernization and speed to market issues; caution the Big Data (EX) Working Group that its overly ambitious 2017 work plan may create unnecessary layers of regulation; and offer comments on the International Association of Insurance Supervisors’ (IAIS) recently issued Stakeholder Engagement Plan. The NAIC’s Spring 2017 National Meeting will take place April 6-10 in Denver, Colorado.
With rapid technological developments changing how insurers serve the public, AIA will urge the Innovation and Technology Task Force to strike the appropriate balance between regulatory oversight and innovation to encourage continued technological advancements for the benefit of the consumer. On Saturday, April 8, the Task Force is expected to formally adopt its charges to: provide a forum for regulator education and discussion of innovation and technology in the insurance sector; monitor technology developments that impact the state insurance regulatory framework; and develop regulatory guidance as appropriate. It also will have oversight of the NAIC’s Cybersecurity (EX) and Big Data (EX) Working Groups.
“Regulators and insurers recognize that consumers are increasingly demanding technological advancements from insurers. New services, such as digital platforms, have the potential to bring more of the risk-bearing public – especially young people – into the insurance market, and that would be a great development. Given the rapid growth of investment in ‘insuretech’ and the admittedly finite resources of many departments of insurance, AIA urges regulators to focus their attention on protecting the interests of consumers and adopt a lighter regulatory touch with respect to innovations involving purely business-to-business transactions,” said Mike O’Malley, AIA Senior Vice President for Public Policy. “We welcome the NAIC’s active involvement in this area and look forward to continued collaboration with the Task Force in order to maintain and grow a stable, competitive and innovative insurance marketplace.”
The Property and Casualty Insurance (C) Committee will discuss commercial lines modernization at its meeting on Monday, April 10. AIA has advocated for regulators to revisit the issue and provide interested parties with an update on the recommendations of the disbanded Commercial Lines (EX) Working Group, including the Working Group’s recommendation that the states take a fresh look at the efficiency and effectiveness of rate and form review for commercial lines.
“We thank the NAIC for revisiting this important issue and look forward to working with regulators on the modernization of commercial lines regulation. For business-to-business transactions, easing rate and form filing requirements would maximize regulatory efficiency and increase competition,” said Lisa Brown, AIA Assistant General Counsel & Director, Compliance Resources.
On Saturday, April 8, the Big Data (EX) Working Group will review its Potential Work Plan for 2017. “AIA would urge caution as the Working Group reviews a potentially over ambitious work plan. The focus on examining insurer use of data analytics and complex models must not result in unnecessary layers of regulation that stifle insurers’ ability to respond to consumer demands for new and innovative products, pricing and delivery methods,” said Brown.
The International Association of Insurance Supervisors (IAIS) recently issued Stakeholder Engagement Plan will be discussed on Saturday, April 8 by the International Insurance Relations (G) Committee. AIA will highlight for the committee that, while the Engagement Plan represents a step in the right direction, a number of issues still need to be addressed. “AIA remains concerned about the level of transparency available to the industry and the quality of stakeholder feedback being provided,” said Phillip Carson, AIA Associate General Counsel & Director of Financial Regulatory Policy.