National Association of Insurance Commissioners (NAIC) Market Research Report

Background

The National Association of Insurance Commissioners (NAIC) is a U.S. standard-setting and regulatory support organization established in 1871. It is governed by the chief insurance regulators from all 50 states, the District of Columbia, and five U.S. territories. The NAIC's primary mission is to support state insurance regulation and provide a forum for coordination and collaboration among state insurance regulators. The organization is responsible for developing and adopting uniform insurance laws and regulations, providing education for regulators and the industry, and conducting research related to the insurance industry.

Key Strategic Focus

The NAIC's strategic focus includes:

Standard Setting: Developing model laws and regulations to promote uniformity in insurance regulation across states.

Regulatory Support: Providing tools, data, and analysis to assist state insurance regulators in effectively overseeing the industry.

Consumer Protection: Ensuring fair, competitive, and healthy insurance markets to protect consumers.

Market Analysis: Collecting and analyzing data to monitor market trends and insurer performance.

Education and Training: Offering educational programs for regulators and industry professionals to enhance their knowledge and skills.

Financials and Funding

As a non-profit organization, the NAIC's funding primarily comes from:

Membership Dues: Contributions from state insurance departments.

Service Fees: Charges for various services, including data reporting and analysis.

Publications and Reports: Revenue from selling market share reports and other publications.

The NAIC's operating budget for the fiscal year 2025 is projected to be $173.6 million.

Pipeline Development

The NAIC does not develop products or services in the traditional sense. Instead, it focuses on:

Model Laws and Regulations: Continuously updating and creating new model laws to address emerging issues in the insurance industry.

Data Collection Initiatives: Implementing data calls, such as the Property & Casualty Market Intelligence Data Call, to gather comprehensive market data.

Educational Programs: Developing training and educational resources for regulators and industry professionals.

Technological Platform and Innovation

The NAIC utilizes several technological platforms and tools, including:

Market Analysis Tools: Platforms that provide data on insurer financial stability, market conduct, and consumer complaints.

Data Reporting Systems: Systems for collecting and disseminating insurance data, such as the System for Electronic Rate and Form Filing (SERFF).

Consumer Education Resources: Online tools and resources to educate consumers about insurance products and their rights.

Leadership Team

The NAIC's leadership includes:

Jon Godfread: President (2025)

Gary Anderson: Chief Executive Officer (effective May 1, 2024)

Andy Beal: Chief Operating Officer and Chief Legal Officer

James Woody: Chief Financial Officer

Jennifer L. Stroud: Chief People Experience Officer

Kyle Sexton: Chief Enterprise Architect

Competitor Profile

As a non-profit organization, the NAIC does not have direct competitors. However, it collaborates with and is influenced by various organizations, including:

State Insurance Departments: The primary regulatory bodies for insurance within each state.

Federal Insurance Office (FIO): A division of the U.S. Department of the Treasury that monitors the insurance industry.

International Association of Insurance Supervisors (IAIS): An international standard-setting body for insurance regulation.

Strategic Collaborations and Partnerships

The NAIC collaborates with:

State Insurance Departments: To coordinate regulatory efforts and share information.

Federal Agencies: Such as the FIO, to align federal and state regulatory approaches.

International Organizations: Including the IAIS, to harmonize global insurance standards.

Operational Insights

The NAIC's operational considerations include:

Regulatory Coordination: Ensuring consistent and effective regulation across all states and territories.

Data Management: Collecting, analyzing, and disseminating large volumes of insurance data.

Consumer Advocacy: Protecting consumers through education, complaint resolution, and ensuring fair market practices.

Strategic Opportunities and Future Directions

The NAIC's strategic roadmap includes:

Modernization Efforts: Implementing the "Securing Tomorrow Roadmap" to modernize regulatory tools and data systems.

Climate Resilience: Expanding initiatives to address climate change and its impact on the insurance industry.

Technology Integration: Enhancing the use of technology, including big data and artificial intelligence, to improve regulatory processes and market analysis.