NAIC Announces 2023 Priorities

The National Association of Insurance Commissioners (NAIC) recently announced its regulatory priorities for 2023. Insurers should consider the extent to which these matters impact them and the prospect that insurance regulators will issue new reporting requirements or guidance regarding these topics in the near future. The priorities, presented in alphabetical order in the NAIC’s Feb. 13 press release, offer a snapshot of some current industry issues and developments and how regulators perceive them. 

• Reduce climate risk-related protection gaps through a consumer education campaign to raise awareness of possible coverage needs and state department resources. The NAIC will also advocate for a stable, long-term National Flood Insurance Program (NFIP) and establish the Catastrophe Modeling Center of Excellence (COE) to assist states in their risk analysis and mitigation efforts. 

• Engage with domestic and international interested parties to update model laws and issue new guidance with respect to responsible data/artificial intelligence (AI) use and cybersecurity considerations. 

• Facilitate insurer financial oversight and transparency to ensure a solvent and accountable marketplace. Specific initiatives include resolving considerations advanced by the Macroprudential Working (E) Group to address financial transparency in private equity-affiliated insurers and traditional life companies and related investment activities. 

• Coordinate with industry to implement the Multistate Actuarial (MSA) Review Framework in Long-Term Care Insurance (LTCI) in order to create a more consistent regulatory environment. State insurance regulators will also seek to increase consumer awareness of “reduced benefits options” and other initiatives to help guarantee promised benefits. 

• Improve the marketing of insurance products: Create a search tool to access the license status of health insurance producers, improve information sharing to enable state insurance departments to inform consumers about misleading and deceptive practices, and coordinate with federal agencies and amend model laws to provide state insurance departments with regulatory authority over third-party marketers and lead generators. 

• On issues of race, close the protection gap for diverse and underrepresented communities and expand opportunities in the insurance sector.