At the National Association of Insurance Commissioners’ (NAIC) National Meeting this week in Denver, Colorado, the American Insurance Association (AIA) urged NAIC’s Innovation and Technology Task Force to encourage technological advancements that deliver insurance products in new ways.
“Regulators and insurers recognize that consumers are increasingly demanding technological advancements from insurers. New services, such as digital platforms, have the potential to bring more of the risk-bearing public – especially young people – into the insurance market, and that would be a great development. Given the rapid growth of investment in ‘insuretech’ and the admittedly finite resources of many departments of insurance, AIA urges regulators to focus their attention on protecting the interests of consumers and adopt a lighter regulatory touch with respect to innovations involving purely business-to-business transactions,” Mike O’Malley, AIA senior vice president for public policy, said. “We welcome the NAIC’s active involvement in this area and look forward to continued collaboration with the Task Force in order to maintain and grow a stable, competitive and innovative insurance marketplace.”
AIA also encouraged the NAIC’s Property and Casualty Insurance Committee to continue its reexamination of commercial lines modernization and speed to market issues.
AIA has advocated for regulators to revisit the issue and provide interested parties with an update on the recommendations of the disbanded Commercial Lines Working Group, including the Working Group’s recommendation that the states take a fresh look at the efficiency and effectiveness of rate and form review for commercial lines.
AIA also cautioned the Big Data Working Group that its overly ambitious 2017 work plan may create unnecessary layers of regulation.
“AIA would urge caution as the Working Group reviews a potentially over ambitious work plan,” Lisa Brown, AIA assistant general counsel and director of compliance resources, said. “The focus on examining insurer use of data analytics and complex models must not result in unnecessary layers of regulation that stifle insurers’ ability to respond to consumer demands for new and innovative products, pricing and delivery methods.”
The association offered comments on the International Association of Insurance Supervisors’ recently issued Stakeholder Engagement Plan. While the Engagement Plan represents a step in the right direction, AIA said several issues still need to be addressed.
“AIA remains concerned about the level of transparency available to the industry and the quality of stakeholder feedback being provided,” Phillip Carson, AIA associate general counsel & director of financial regulatory policy, said.