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National Association of Insurance Commissioners NAIC: How We Use Insurer Compliant Data Trish Schoettger NAIC Sr. Manager.

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Presentation on theme: "National Association of Insurance Commissioners NAIC: How We Use Insurer Compliant Data Trish Schoettger NAIC Sr. Manager."— Presentation transcript:

1 National Association of Insurance Commissioners NAIC: How We Use Insurer Compliant Data Trish Schoettger NAIC Sr. Manager

2 NAIC: How We Use Insurer Compliant Data NAIC – History & Background State Insurance Regulatory Objectives How NAIC Supports the States Collecting Data

3 NAIC: How We Use Insurer Compliant Data Why NAIC Collects the Data How States Use the Data Keeping the Data Confidential How You Can Participate in the Process

4 NAIC History & Background A Tradition of Consumer Protection – Formed in 1871 Voluntary organization of chief insurance regulatory officials from the 50 states, District of Columbia and five U.S. territories Created to address the need to coordinate regulation of multi state insurers. Assists the state’s in their primary objective – protecting consumers and ensuring the safety and soundness of insurance companies operating in the United States.

5  Market Conduct Analysis  Consumer Assistance & Education  Fraud Investigation & Enforcement State Insurance Regulatory Objectives License/ Approve Market Regulation/ Consumer Affairs Financial Solvency Government Affairs  Company Certificate of Authority  Producer/Agent Licensing  Rate & Form Product Approval  Financial Analysis & Exams  Statutory Accounting & Reporting  Receivership – Rehab or Liquidation  State Accreditation Program  Coordinate w/Fed Reg  State Legislators – NCSL, NCOIL  International Relations - IAIS

6 How NAIC Supports the States Membership Services –Education & Training –Meeting Planning Financial Regulatory Services Securities Valuation Market Regulatory Services Legal/Model Laws Research/Library Services Information Systems Insurance Products and Services Government Relations

7 How NAIC Supports the States Membership Services –Education & Training –Meeting Planning Financial Regulatory Services Securities Valuation Market Regulatory Services Legal/Model Laws Research/Library Services Information Systems Insurance Products and Services Government Relations

8 Why NAIC Collects Data 1980’s – Regulator Goal to Improve Financial Solvency Surveillance of all Insurance Companies –Simplify Compliance for Insurance Companies –Modernize the Financial Reporting process by Collecting Data Electronically –Reduce Cost of Regulatory Compliance for Companies –Provide Regulators in every State, Easy Access to Timely, Accurate Insurance Company Financial Data

9 Why NAIC Collects Data FDR: Financial Data Repository –Simplify compliance for insurance companies Adopted one uniform company filing specification standard –Modernize the financial reporting process NAIC provides the secure network infrastructure for companies to file electronically via the Internet –Reduce Cost of Regulatory Compliance Company can prepare and file their financial statement once, and comply with statutory filing requirements in all 56 jurisdictions

10 Why NAIC Collects Data FDR: Financial Data Repository Provide Regulators in every State, Easy Access to Timely, Accurate Insurance Company Financial Data –Collect & Publish in 24 hours – company filing of 57,500 data elements loaded and data validated against 16,638 crosschecks within 24 hrs. –Worlds Largest Insurance Database – 5,000+ company filings aggregated, independently reviewed and supporting calculations added (i.e., RBC, IRIS Ratios) – 280 gig data, –Immediate, On-line Access for 12,000+ Regulators – all State Insurance Departments, regardless of size, staff experience, or budget can begin monitoring insurance company financial solvency Formats – PDF, XML, Excel, HTML Tools – Scoring, Profiles, Exam Prep –Recent study estimated cost $3 - $13 million, per state, to replicate FDR

11 Why NAIC Collects Data Simplify Modernize Reduce Costs Uniform Standard Make Electronic Submit once, comply all states Submit once, comply all states Build once, used by all states Build once, used by all states Streamline

12 Collecting Data License Approve SPLD - Producer Licensing UCAA - Company Licensing SERFF – Rate & Form Product Filing FDR – Financial Data Repository AVS, ISIS - Securities Valuation GRID – Global Receivership Info CDS – Complaint Database RIRS – Regulatory Actions MAP – Market Analysis Profile Financial Solvency Market Regulation Consumer Affairs CIS – Consumer Information Source OFRS – Online Fraud Reporting System

13 How States Use the Data Make Company Licensing Decisions Make Producer/Agent Licensing Decisions Make Rate & Form Approval Decisions Conduct Company Solvency Surveillance Prepare for Market/Financial Examinations Evaluate Insurance Company Investment Portfolio Track Company Receiverships Track Trends in Consumer Complaints Monitor Marketplace, Conduct Investigations

14 Keeping the Data Confidential Legal –Maintain Confidentiality Agreements with States Information Technology Infrastructure –Maintain $6 million data center and network –Provide a Private Frame-Relay Telecommunications Network with the States –Follow Industry Security Standards and Procedures Maintain Adequate Firewalls Encrypt Confidential Data Conduct System Security Design Reviews

15 How You Can Participate in the Process Implement Database NAIC Committee Open Meetings H Committee Review NAIC Budget NAIC Database New Database Process Identifies regulatory need Policy and database developed during open meetings Reviewed by Information Resources Mgmt (H) Cmte to ensure alignment with overall regulatory strategic plan Proposal vetted thru budget process, (includes public budget hearing)

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