The market conduct data analysis effort for life and property-casualty insurers recently was discussed prior to the summer meeting next month of the National Association of Insurance Commissioners.
Life insurers data is currently being analyzed, and property-casualty insurers are in the process of completing a data survey for the pilot. The project is being developed as part of an effort to determine whether a market conduct annual statement could be implemented for insurers.
The possibility of the project being extended for a second year is under consideration, according to Sue Stead, the Ohio regulator spearheading the effort. But no decision has been made about the extension or the timing of the project if it is extended, she adds.
A preliminary finding in life insurers submitted data suggested disparity of life insurance replacement ratios. However, Stead cautions that the data is preliminary and that the ratio of replacements to new business could vary because of different definitions of replacements such as whether they include surrenders and 1035 exchanges. A disparity in that ratio does not necessarily equate to a high number of replacements, she added.