AIA Raps NAIC on Proprietary Information

Washington — The American Insurance Association (AIA), which has voiced strong opposition in the past to efforts by the National Association of Insurance Commissioners (NAIC) to collect confidential and proprietary insurer information, plans to continue to offer their dissent during the NAIC’s national meeting May 31 to June 2 in San Francisco.

"The NAIC is a non-profit, non-governmental entity,” says Marc Racicot, AIA president. “As such, it should not collect proprietary market data for which no guarantee of confidentiality can be provided. This information is extremely sensitive and if it were to be compromised, there would be needlessly harmful ramifications for both consumers and insurance companies. In the states where insurers file market conduct annual statements, there are clear statutory requirements governing their confidentiality, and regulators must take appropriate steps to ensure this information remains confidential."

Insurers already operate in a highly regulated environment, Racicot points out. “The annual financial statement filed every year by insurers, which contains financial—and not proprietary market information—is a key tool for regulators, consumers and investors to monitor the financial health and solvency of an insurance company," says Racicot.

Source: American Insurance Association