Best’s News & Research Service - November 23, 2015 09:36 AM (EST)
New NAIC President Huff Says NAIC Will Focus on Consumer Protection in 2016
NATIONAL HARBOR, Md. //BestWire// - Missouri Insurance Commissioner John Huff, the new president of the National Association of Insurance Commissioners, said his administration will focus on protecting consumers in the insurance marketplace in 2016.
The NAIC elected its officers by acclamation at the end of its Fall National Meeting in Maryland on Nov. 22. Their one-year terms begin Jan. 1.
Huff, who won his post as president-elect in a special election last February over Kentucky Insurance Commissioner Sharon Clark, succeeds Montana Insurance Commissioner Monica Lindeen as president (Best’s News Service, Feb. 9, 2015). Clark, a Democrat who potentially could be replaced at the will of Kentucky’s new Republican governor, succeeds Huff as president-elect.
Wisconsin Insurance Commissioner Ted Nickel, who served the past year as secretary-treasurer, succeeds Clark as vice president. Tennessee Insurance Commissioner Julie Mix McPeak won election running unopposed for secretary-treasurer.
“The No. 1 thing we’re going to focus on, it’s going to be what we do best. We’re going to squarely focus on protection of consumers and how to maintain our competitive market,” Huff said.
Two areas where Huff said the NAIC should expend more energy include helping individuals to build lifetime incomes and providing retirement education. He said the focus should be on sound, affordable products to help in those areas.
Huff said the NAIC should leverage its position as the world leader in insurance data collection, validation, aggregation and analysis. “We can do more there to keep pace with product innovation and emerging trends, but that’s our strength,” he said. “We are a technology powerhouse.”
Cybersecurity will be a point of emphasis as well. The NAIC Cybersecurity Task Force recently passed its Cybersecurity Bill of Rights, which Huff said is an aspirational document that will serve as a road map of how the NAIC wants to protect consumers. Huff said once the NAIC agrees on the document, it will be finalized soon after. Following approval, the NAIC will begin the process of crafting a cybersecurity model law and model regulations for state regulators to consider, he said.
Nickel said the NAIC wants to make sure regulators are monitoring the increased availability of cybersecurity insurance for entities, individuals and corporations that want to buy it. He said NAIC should “make sure that as new entrants move capital into that space to ensure against cyber breaches that companies themselves that are endeavoring to provide cyber coverage are absolutely capitalized and their solvency isn’t at risk.”
Huff also said the NAIC should review regulatory treatment of investments the insurance industry makes to repair and build the nation’s infrastructure. “Our insurance industry is one of — if not the — largest investor in this country and we want to make sure there are no regulatory obstacles to allow them to continue to make those investments,” Huff said.
Clark said she was proud the NAIC has taken its first steps toward a market conduct accreditation document. McPeak said principle-based reserving pilot programs would be in the offing as the United States prepares for ratification of the life insurer reserve item early in 2016 and full implementation in 2017.
(By Thomas Harman, Washington Bureau manager, BestWeek: Tom.Harman@ambest.com)