CHICAGO - The Property Casualty Insurers Association of America (PCI) will be highly engaged at the National Association of Insurance Commissioners (NAIC) Summer National Meeting in Chicago, August 14 – 18, 2015. PCI will be advocating on key issues such as price optimization, TRIA implementation and cybersecurity.
The Casualty Actuarial and Statistical (C) Task Force is scheduled to continue its work on the NAIC price optimization whitepaper. “PCI has been supportive of the NAIC’s balanced and evidence-based approach to the whitepaper and is encouraging regulators to avoid actions or pronouncements that would have a negative effect or eliminate lawful and legitimate practices,” said Deirdre Manna, PCI vice president, political engagement and regulatory affairs.
With all the headlines regarding cybersecurity issues, PCI will be engaged with the Cybersecurity (EX) Task Force as they are updated on cybersecurity legislation, receive a report from the IT Examination (E) Working Group and discuss the Federal Financial Institutions Examination Council (FFIEC) cyber assessment tool at the summer meeting. The task force will also hold a panel discussion with Premara, Anthem and Care First regarding their recent data breaches. Additionally, the task force will discuss progress on the initial draft of the NAIC’s Cybersecurity Consumer Bill of Rights.
Another priority issue for PCI will be the Blanks Working Group Accounting Practices and Procedures (E) Task Force as they consider a proposed Annual Statement Supplement forwarded by the TRIA Implementation Working Group. The supplement proposes to collect certain information regarding the terrorism insurance and reinsurance market.
“The industry has opposed the adoption of the supplement at least until the NAIC can coordinate with the Federal Insurance Office (FIO), which is required under the 2015 TRIA reauthorization legislation to conduct a study of the market and collect information,” said Manna. "We have argued that coordination is essential to prevent duplicative data calls and to ensure that the information collected is useful and not subject to misuse.”
PCI will be closely monitoring the Auto Insurance (C/D) Study Group meeting and the discussion regarding the recent Consumer Reports and Consumer Federation of America reports. These groups are calling on the nation’s insurance commissioners to ban practices such as credit-based insurance scoring. PCI will be prepared to comment as needed on these studies and the consumer benefits of actuarially justified rating factors.
Additionally, the Privacy Disclosures (D) Working Group will be determining next steps in light of the Consumer Financial Protection Bureau’s (CFPB) final rule “Amendment to the Annual Privacy Notice Requirement under the Gramm-Leach-Bliley Act (Regulation P).” PCI will urge the NAIC to change the Privacy of Consumer Financial and Health Information Regulation to be more consistent with the CFPB’s rule.
Financial regulatory issues remain a high priority at the NAIC, and the ComFrame Development and Analysis (G) Working Group will conduct further discussion on a staff issue paper containing three possible ways to create a group capital calculation. “PCI urged the working group to discuss whether regulators believe such a requirement is needed, and we will continue to urge regulators to discuss and decide this threshold question before further considering the three proposed approaches,” said Manna.