NAIC Announces 2023 Regulatory Priorities
The National Association of Insurance Commissioners (NAIC) has announced its strategic priorities for 2023. Each year, NAIC Members finalize the priorities and discuss potential workplans after assigning committee responsibilities.
“Our plans for 2023 position us well to continue to advance state-based solutions on current challenging issues. Through close collaboration, careful analysis, and coordinated action, state insurance regulators are committed to protecting consumers and competitive markets in an evolving world,” said Chlora Lindley-Myers, NAIC President and Director of the Missouri Department of Commerce and Insurance.
NAIC 2023 Priorities (in alphabetical order)
Climate Risk/Natural Catastrophes and Resiliency:
Increased climate risks pose a threat to the lives, property, and livelihood of millions of Americans. NAIC Members will work to close climate risk-related protection gaps through an ongoing consumer education campaign raising awareness of the need for coverage and the support state departments of insurance can offer. Other initiatives will include advocating for a stable, long-term National Flood Insurance Program and standing up the Catastrophe Modeling Center of Excellence (COE) to further empower states in their risk analysis and mitigation efforts.
Data/Artificial Intelligence, Cybersecurity, and Innovation:
NAIC members are committed to empowering responsible and pro-consumer innovation in the insurance sector. By updating model laws, engaging with interested parties domestically and internationally, and creating new frameworks and guidance regarding insurers’ responsible data/artificial intelligence (AI) use and cybersecurity response, the NAIC will ensure regulation not only keeps pace with but stays ahead of emerging technologies and associated privacy concerns.
Insurer Financial Oversight and Transparency:
Ensuring a solvent and accountable marketplace that keeps its promises to consumers remains a core focus for state insurance regulators, particularly with a prolonged low interest rate environment creating a search for yield in insurer portfolios that led to above-average market and credit risk, along with alternative asset managers’ growing presence in the sector. Plans include resolving a number of considerations advanced by the Macroprudential Working (E) Group to address financial transparency around private-equity-affiliated insurers and traditional life companies and related investment activities.
Long-Term Care Insurance (LTCI):
LTCI continues to be an issue that impacts both vulnerable consumers and healthy markets. This year, the NAIC will examine a transition to a longer-term strategy, which will include implementing the Multistate Actuarial (MSA) Review Framework in coordination with industry to create a more consistent regulatory environment. State insurance regulators will also consider additional possibilities for increasing consumer awareness of “reduced benefits options,” among other goals to help guarantee consumers receive the benefits they were promised.
Marketing of Insurance Products:
State insurance regulators continue to lead the national conversation on combating deceptive and misleading insurance marketing. In 2023, the NAIC will further equip consumers by creating a customized search tool to access the license status of insurance producers selling health insurance. The NAIC will also enhance information sharing to assist state insurance departments in spreading the word about individuals and entities misleading consumers or misrepresenting their products. Additional actions will include ongoing coordination with federal agencies and amending model laws to provide state insurance departments with regulatory authority over third party marketing organizations and insurance lead generators.
Race and Insurance/Protection Gaps and Financial Inclusion:
The NAIC is committed to continuing to lead the way in 2023 on closing the protection gap, particularly for underrepresented and minority communities, addressing barriers to access, and expanding opportunities in the insurance sector through the N.A.I.C. Foundation.
Source: NAIC
