Members of the National Association of Insurance Commissioners (NAIC) last week elected officers for 2021 and approved a budget for 2021.
The regulators on track to lead the NAIC in 2021 are:
- President: Dave Altmaier of Florida
- President-elect: Dean Cameron of Idaho
- Vice President: Chlora Lindley-Myers of Missouri
- Secretary-Treasurer: Andrew Mais of Connecticut
The NAIC expects to spend $172 million in 2021 on $119 million in revenue, up from about $116 million in expenditures and $113 million in revenue this year, according to an NAIC budget overview.
(Related: NAIC Did Fine in 2019. But…)
The NAIC is a Kansas City, Missouri-based group for the top insurance regulators in the 50 states, five U.S. territories and the District of Columbia.
The United States leaves regulation of the business of insurance up to the states. The NAIC helps state insurance regulators share ideas and develop models for bills, regulations and other types of documents, such as consumer guides.
The top five sources of 2020 NAIC revenue are:
- Database Fees: $32 million
- Securities Valuation Services: $28 million
- Administrative Services and License Fees: $19 million
- Publications and Insurance Data Products: $17 million
- Transaction Filing Fees: $13 million
The NAIC’s major sources of 2020 revenue mostly performed slightly better than expected, in spite of the effects of the COVID-19 pandemic on the economy.
Administrative services and license fee revenue was $900,000 under the budgeted level, in part because of the effects of the pandemic on an NAIC affiliate, the National Insurance Producer Registry.
“Extension of license renewal deadlines due to the closure of examination centers and limits on background checks have reduced the number of transactions flowing through NIPR,” according to an NAIC budget document. “The 2021 budget assumes a slight increase in activity but does not anticipate a return to the number of pre-COVID transactions.”
— Read Raymond Farmer to Lead NAIC in 2020, on ThinkAdvisor.