NU Online News Service, Aug. 26, 6:45 p.m. – MetLife Inc., New York, is backing a data-collection effort that could help state insurance regulators improve the market conduct exam process, but many property-casualty insurers are asking whether the benefits will justify the cost.
The National Association of Insurance Commissioners, Kansas City, Mo., wants to organize a large, detailed data-collection pilot project in 10 states to see if the results can help regulators make the exam process simpler and cheaper for insurers while continuing to protect consumers.
A joint property-casualty trade group is questioning the likely expense of the proposed pilot project.
The group includes the Alliance of American Insurers, Downers Grove, Ill.; the American Insurance Association, Washington; the National Association of Independent Insurers, Des Plaines, Ill.; and the National Association of Mutual Insurance Companies, Indianapolis.
Sixty-two insurers surveyed by the group estimated that answering the proposed data call would cost between $10,000 to $25,000 per company, according to Lenore Marema, a representative for the group and a vice president at the Alliance of American Insurers.
Insurers with low premium volume and insurers with high premium volume gave similar responses, Marema says.
The p-c insurers want to see regulators justify the cost to the 800 affected companies by using the results to come up with more narrowly targeted exams and taking other concrete steps to improve the exam process, Marema says.
But Ann Henstrand, a vice president of government affairs at MetLife, emphasized that MetLife wants to see the NAIC data call succeed.