NU Online News Service, June 13, 12:25 p.m. — Philadelphia
State insurance regulators are trying two new strategies for improving the market conduct review process.
Officials here for the summer meeting of the National Association of Insurance Commissioners, Kansas City, Mo., talked about “how to” guides and “data analysis.”
Advocates of how-to guides want to give regulators guides on techniques for making better use of existing financial statement data.
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Supporters of the data-analysis approach want regulators to collect and analyze more data from bigger insurers.
Missouri officials reported that their department is already using how-to guides, and how-to guides are popular among insurance trade groups.
Four property-casualty groups — the Alliance of American Insurers, Downers Grove, Ill.; American Insurance Association, Washington; National Association of Independent Insurers, Des Plaines, Ill.; and the National Association of Mutual Insurance Companies, Indianapolis — are developing a guide that will show regulators how to use existing data on complaints, premiums, claims and defense costs to identify insurers in need of closer attention.
The American Council of Life Insurers, Washington, also favors expanded use of how-to guides.
A well-designed how-to guide strategy could lead to “uniformity, consistency and transparency,” says Linda Lanam, an ACLI deputy general counsel.
Meanwhile, an NAIC pilot program that uses the data analysis approach began collecting additional data July 1, 2001, and will complete collecting data June 30.