NAIC Market Conduct Data Effort Draws Fire

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.