Home Life Insurance Client Advocate to NAIC: Open the Curtains

Client Advocate to NAIC: Open the Curtains

Client Advocate to NAIC: Open the Curtains


The Innovation, Cybersecurity and Know-how Committee is holding a regulator-only session “as a result of the dialogue or motion contemplated will embody: particular firms, entities or people, together with, however not restricted to, collaborative monetary and market conduct examinations and evaluation,” in accordance with the preliminary agenda.

The NAIC perspective: The NAIC famous {that a} longstanding coverage assertion on open conferences requires the NAIC’s committees, subcommittees, activity forces and dealing teams to conduct enterprise brazenly.

The coverage “doesn’t apply to roundtable discussions, zone conferences, commissioners’ conferences and different like conferences of the members,” in accordance with the coverage statements.

Different open assembly exclusions embody periods involving pending investigations of the NAIC or NAIC members, periods involving potential or pending litigation or periods involving particular firms, entities or people.

“As a result of not all conditions requiring a regulator-to-regulator dialogue may be anticipated on the time a gathering is scheduled, a gathering convened in open session can transfer into regulator-to-regulator session,” in accordance with the coverage assertion.

Birnbaum’s perspective: Birnbaum famous that some NAIC our bodies which might be engaged on delicate, extremely technical points, equivalent to our bodies that develop insurance coverage accounting guidelines are holding public conferences, whereas different, related our bodies are holding regulator-to-regulator periods.

“The primary objective of NAIC nationwide conferences is for regulators to work together with stakeholders,” Birnbaum stated.

When the NAIC holds regulator-only periods, that eliminates regulatory-stakeholder interactions, he stated.

He stated one concern is the NAIC’s position as a corporation that shapes public coverage however can be a personal group that isn’t straight topic to the identical public assembly necessities that may apply to governmental organizations.

One other concern is that the explanations NAIC our bodies give for holding regulator-only periods are sometimes too imprecise, he stated.

A public NAIC assembly session in New York in August 2019. Credit score: Allison Bell/ALM



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