Members of the National Association of Insurance Commissioners may vote on a centralized market conduct data collection system proposal by the end of June.
Sandy Praeger, Kansas insurance Commissioner and president of the NAIC, Kansas City, Mo., talked about the timing here during the NAIC’s summer meeting, at a session of the plenary.
The plenary is a body that includes all voting NAIC members.
The market conduct measure still faces opposition, but the NAIC needs to make a decision before July in order for market data to be included as a supplement to insurers’ annual financial statements, or “blanks,” Praeger said.
The beginning of July is a hard deadline, because vendors will need time to implement any changes, Praeger said.
The blanks committee has created a place marker for a market conduct data page in case a proposal is approved by the full NAIC body.
Lawmakers and regulators sparred here at a legislative liaison committee briefing over just how much vetting the market conduct data proposal has received.
Legislators were not included in the development of the project, according to Rhode Island state Rep. Brian Kennedy, D-Hopkinton, R.I., the president of the National Conference of Insurance Legislators, Troy, N.Y.
NCOIL has its own market data model, and it could have given the NAIC valuable input, Kennedy said.
Montana Insurance Commissioner John Morrison, chair of the Market Regulation and Consumer Affairs Committee, told Kennedy that there was an open discussion during the spring NAIC meeting and then again on May 28 when the NAIC’s executive committee held a conference call to discuss the market conduct data proposal.
The market conduct data proposal topic kept surfacing in different venues throughout the summer meeting.
Insurers for the major life and property-casualty trade organizations said the proposal needs more consideration.
Industry groups said they want to protect the confidentiality of the data, and especially to protect data that could help class-action lawyers or competitors.
Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, said gathering market conduct data through a financial statement supplement would provide consumers with a clearer market conduct picture and would be useful to regulators in ensuring proper market conduct behavior.
Morrison said the proposal would create more uniformity of regulation and would help simplify the process insurers go through when filing market conduct data.
Today, insurers file market conduct data with one state at a time.
Insurers have asked for a simpler way to file the data, Morrison says.