A nonprofit organization that helps many states process insurance product filings is reporting strong filing and fee revenue growth for 2019.
The Interstate Insurance Product Regulation Commission says in annual report for 2019 that it received 1,639 product filings last year, up from 1,438 product filings in 2018.
The Insurance Compact collected $3.4 million filing fees for the participating states, up from $3.1 million the year before.
- A link to the compact’s annual report is available here.
- An article about the National Association of Insurance Commissioners’ effort to retool for the COVID-19 era is available here.
The compact’s own fee revenue increased to $1.6 million, from $1.4 million.
The compact’s statement of activities show that it brought in $646,204 more than it spent on $3.2 million in total revenue in 2019, compared with a $141,269 gain on $2.4 million in total revenue in 2018.
The compact began handling filings in 2007.
The compact now handles filings for 44 states, Puerto Rico and the District of Columbia.
The District of Columbia recently became the latest compact member.
The list of lines handled includes individual life insurance, individual annuities, long-term care insurance, individual disability insurance, employer group term life insurance, and employer group disability insurance. The compact is adding employer group annuities this year.
The National Association of Insurance Commissioners, a group for state insurance regulators, helped bring the compact to life and has provided financial support.
In the new annual report, the compact officers note that the compact has a line of credit from the NAIC that was last used in 2012. The compact is now doing well enough to be working with the NAIC on a repayment plan, according to the officers’ letter.
One reason for the strong growth was changes in the rules governing life insurance policies, according to the compact officers.
States required life insurers to shift to the 2017 Commissioners Standard Ordinary Mortality Table Jan. 1.
“Against the backdrop of a deadline to convert life insurance products to new mortality tables in advance of the Jan. 1, 2020 implementation of principles-based reserving, the Insurance Compact saw a 15% increase in both registered companies and product submissions over 2018 and ended the year with its largest increase in net assets since its inception,” the officers write in their letter.
— Read NAIC May Upgrade the SERFF Filing Database System, on ThinkAdvisor.