What is National Association of Insurance Commissioners (NAIC)
The National Association of Insurance Commissioners (NAIC) is a nationwide organization whose main responsibility is to protect the interests of insurance consumers. Some of the main objectives of the NAIC are to provide support to insurance regulators across the country by promoting competitive markets, the improvement of insurance regulations and equitable treatment of insurance consumers.
BREAKING DOWN National Association of Insurance Commissioners (NAIC)
The NAIC was founded in 1871 and is headquartered in Kansas City. The National Association of Insurance Commissioners (NAIC) was created and governed by chief insurance regulators from all 50 states, the District of Columbia and five U.S. territories. Its first major mission was the development of uniform financial reporting standards for insurance companies. Since then, new legislative concepts, new levels of expertise in data collection and delivery, and a commitment to even greater technological capability have evolved the mission of NAIC. Through its many committees, task forces, and working groups, the NAIC attempts to develop and implement laws and regulations that create national standards in an attempt to further benefit insurance consumers.
More specifically, NAIC assists state insurance regulators, individually and collectively, to achieve the following goals in a way that is consistent with the wishes of NAIC members:
- Protect public interest
- Promote competitive markets
- Promote and facilitate fair and equitable treatment of insurance consumers
- Encourage reliability, solvency and financial solidarity of insurance institutions
- Support and improve state regulation of the insurance industry
Organizational Divisions of the National Association of Insurance Commissioners
- Communications/Media Relations – Provides communications support for the organization and its membership through media relations, news releases, electronic and web-based material and the promotion of consumer education.
- Executive – Provides overall support to the NAIC and its members. This division includes the finance department and the business strategy, risk management and compliance department.
- Financial Regulatory Services (FRS) – Contributes technical expertise in financial regulation, solvency regulation, financial reporting, statutory accounting, capital adequacy (risk-based capital), accounting, examinations, reinsurance, investments and international insurance issues to regulators.
- Human Resources and Internal Services – Focused on the NAIC’s internal operations, including human resources, facilities, records and copy and mail services.
- Information Technology Group (ITG) – Delivers information technology products and services that support state-based insurance regulation. The ITG supports a number of tools that enable insurance regulators to further the state-based system.
- Legal - Analyzes developments in insurance law, provides advice to state insurance regulators and serves as in-house counsel to the association.
- Member Services - Supports members and staff in education and training, meeting planning and library resources.
- Regulatory Services Division - Provides support to members and staff in the areas actuarial and statistical services, market regulation, and financial regulatory services.
- Technical Services – Provides overall technology support through the NAIC Help Desk, which is staffed during normal business hours.