1. Erin Collins NAMIC AVP – State Affairs

2. NAMIC Today Largest P/C trade association with 1,400 member companies
Serving 170,000,000+ policyholders
200,000 employees of NAMIC members
Representing $230 billion in annual premiums
Representing nearly 40% of the total P/C market
Representing 48% of U.S. auto/ homeowners, and
33% of U.S. commercial markets
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

4. Major Industry Issues Automated Vehicles American Law Institute
McCarran-Ferguson Repeal
Incorporation by Reference
Auto Affordability
Covered Agreement
Disparate Impact
PARTS Act
Medicare Secondary Payer
Claim Act
NARAB
Postal Reform
Workers Comp
Disaster mitigation
Drones
Cyber / NAIC model / NYS
Domestic Cap Standards
IAIS Standards / ICS
Underwriting Freedom
Big Data
Crop insurance
Tort Reform
FACT ACT / Asbestos
Arbitration
CFPB
DOL – Overtime & Fiduciary
Cadillac tax

5. domestic vs. internationally-based insurers
New paradigm emerging in regulation debate
Rather than federal vs. state regulation dichotomy, new paradigm is emerging
On both FIO reform and int’l legislation, support or opposition is cutting along
domestic vs. internationally-based insurers
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

6. Key Industry Issues
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

7. Disaster mitigation reform
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

8. An endless cycle of destruction
Disaster spending is on an unsustainable path and current policies are enabling this trend.
As a result of an unprecedented hurricane season and ongoing wildfires in the Western United States, 2017 was the costliest year for natural disasters in U.S. history.
The number of federal disaster declarations has increased drastically in recent years
But despite knowing that every $1 invested in mitigation and building resiliency can save between $4 and $8 in the aftermath of a disaster,
The U.S. spends 89 times more on post-disaster assistance than pre- disaster mitigation.
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

9. Proven legislative track record
Since the forming of the coalition, we have had success creating and building support for a number of pieces of legislation, including:
Safe Building Code Incentive Act
National Mitigation Investment Act
Disaster Savings and Resilient Construction Act
FEMA Disaster Assistance Reform Act
National Windstorm Impact Reduction Act
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

10. National Mitigation Investment Strategy
But with the federal government’s approach to disaster preparedness so backwards, we sought to create a more comprehensive strategy for investing in disaster mitigation and resilient construction. Our National Mitigation Investment Strategy would:
Incentivize States to Mitigate and Build Resiliently
By allowing the federal cost share after a disaster to be increased from 75 percent to as high as 85 percent for states that grade high on a resiliency rating scale.
Drastically Enhance Pre-Disaster Mitigation
Through the creation of a new Pre-Disaster Mitigation (PDM) account that would be funded via annual funding from the Post-Disaster Relief Fund.
Equip Communities to Build Resiliently
By clarifying that “Essential Assistance” doled out to communities in the wake of a disaster can be used towards building code development and enforcement. place.
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

11. Key Industry Issues nfip reauthorization and reform
House & Senate passed NFIP reauthorization Dec. 21 as part of deal to avoid government shutdown; President Trump signed into law on Dec. 22.
Short-term extension through January 19, 2018; third short-term extension since September.
Despite short-term efforts, progress has been made:
Charge Actuarial, Risk-Based Rates
Increase Private Sector Involvement
Allow access to historical loss data
Eliminate the WYO non-compete clause
Address Affordability by establishing a targeted, needs-based program for premium support
Increase Mitigation and Address Repetitive Loss Properties.
Little Senate progress toward long-term NFIP reauthorization.
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

12. Insurance company drones
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

13. Insurance and Drones: The Path Ahead
Key Industry Issues
Insurance and Drones: The Path Ahead
NAMIC has made significant progress in enabling insurers to use drones, yet issues remain, including:
Restoring private airspace for drone flights below 200 feet
Creating rules for operating drones out of visual-line-of-sight
Creating rules that allow drone users to operate over people
On November 2, President Trump unveiled a UAS Integration Pilot Program, which seeks partnerships between state, local, tribal governments and private industry to gather operational and other data.
The Pilot Program is designed to accelerate the integration of UAS into our nation’s airspace system while spurring innovation.
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

14. Key Industry Issues Congressional action on private airspace
In July, Sen. Diane Feinstein (D-CA) and Rep. Jason Lewis (R-MN) introduced legislation designed to restore the rights of private airspace under 200 feet.
NAMIC worked with Rep. Lewis to craft the Drone Innovation Act, which would ensure drone operations under 200 feet would be governed pursuant to traditional property laws.
NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES

15. 2018 National State Legislative Agenda

16. 2018 National State Legislative Agenda
Speed to Market
Rating Accuracy
Regulatory Overreach/Market Conduct
Civil Justice reform
Anti-civil justice defense
Solvency/Financial Regulation
Corporate Governance
Credit for Reinsurance
Innovation
Sharing Economy
Future of Auto
Autonomous Vehicles
Depreciation of Costs
Mutuality
Workers Comp Reform
Insurance Verification
Electronic Business Practices
Catastrophe and Mitigation

17. Catastrophe & Mitigation
Work proactively toward “storm scammer” legislation based on model language adopted by the National Conference of Insurance Legislators. 1
Urge for bills that incentivize disaster preparedness and require discounts to be actuarily sound while opposing state discount benchmarks on insurers. 2
Oppose mandatory discounts, rather encouraging provisions that allow the free market to innovate and develop discounts as they are relevant and of use to the consumer. 3

18. Catastrophe & Mitigation

19. Catastrophe & Mitigation

20. Questions? Please contact: Erin Collins, NAMIC AVP – State Affairs