February 24, 2023
Kramer Levin Naftalis & Frankel LLP
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The National Association of Insurance Commissioners (NAIC) recently announced its regulatory priorities for 2023. Insurers should consider how these matters affect them and the prospect of new reporting requirements or guidance on these issues being issued by insurance regulators in the near future. The priorities, presented in alphabetical order in NAIC’s February 13 press release, provide a snapshot of some of the current industry issues and developments and how regulators are perceiving them.
Reducing protection gaps related to climate risks through a consumer education campaign to raise awareness of possible coverage needs and Department of State resources. The NAIC will also advocate for a stable, long-term National Flood Insurance Program (NFIP) and establish the Center of Excellence in Disaster Modeling (COE) to assist states in their risk analysis and mitigation efforts. Work with national and international stakeholders to update model laws and issue new guidance related to responsible use of data/Artificial Intelligence (AI) and cybersecurity considerations. Facilitate insurer financial oversight and transparency to ensure a solvent and accountable market. Specific initiatives include resolving considerations put forward by the Macroprudential Working (E) Group to address financial transparency in private equity-linked insurers and traditional life companies and related investment activities. Coordinating with industry to implement the Multistate Actuarial (MSA) Review Framework in Long-Term Care Insurance (LTCI) to create a more consistent regulatory environment. State insurance regulators will also seek to raise consumer awareness of “reduced benefit options” and other initiatives to help deliver promised benefits. Improve marketing of insurance products: Build a search tool to access health insurance provider licensing status, improve information sharing so state insurance departments can inform consumers about deceptive and fraudulent practices, and coordinate with federal agencies and amend model laws to state Insurance departments with oversight over third party marketers and lead generators. Close the racial protection gap for diverse and underrepresented communities and expand insurance opportunities.
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