NAIC BudgetThe NAIC's annual budget process is an open and deliberative process among the NAIC members and members of the insurance industry. NAIC budgets have historically offered more disclosure than any nonprofit budget. Throughout the development of the NAIC's budget there are numerous and rigorous reviews by all levels of management, the NAIC Officers, the Internal Administration (EX1) Subcommittee, and the NAIC Executive Committee. As stated in Article IV of the NAIC Bylaws, the budget is released to the public for comment before final consideration and adoption at the NAIC Winter National Meeting. NAIC 2010 Budget ProposalThe NAIC’s proposed 2010 budget began the approval process at the Fall National Meeting, following months of development by NAIC leadership, the Internal Administration (EX1) Subcommittee, the Executive (EX) Committee and executive staff. “Like all businesses in the current economy, the NAIC has also experienced certain impacts in its budget. In response, we have worked diligently to reduce costs and seek opportunities for revenue enhancement,” said Jane Cline, NAIC President-Elect and West Virginia Insurance Commissioner. “However, the 2010 proposed budget does not in any way compromise or diminish our unwavering commitment to serving regulators as they protect consumers and ensure solvency of the industry. In fact, the proposal reflects a budget that is responsible, realistic and transparent to all interested parties.” The NAIC budget includes total revenues of $73.6 million and total expenses of $70.9 million, which represent a 0.7% increase and 0.8% decrease, respectively, from the 2009 budget, for $2.7 million in projected net revenue. Business and Fiscal Impact Statements are being proposed for three new policy and business initiatives at the NAIC, including:
The Internal Administration (EX1) Subcommittee will hold the public budget hearing on the NAIC 2010 Proposed Budget* on November 4, 2009 by teleconference at 9:30 a.m. Central. Further details and instructions on how to participate are located on the NAIC Conference Call Calendar. The NAIC received comments from four insurance company trade associations, including the American Council of Life Insurers (ACLI), American Insurance Association (AIA), National Association of Mutual Insurance Companies (NAMIC), and the Property and Casualty Insurers Association of America (PCI). The NAIC's response to the collective comments is posted for review prior to the November 4th public hearing (see Summary of Comments on the NAIC Proposed 2010 Budget). The full text of all comment letters received are also included. The Subcommittee will consider adoption of the 2010 proposed budget immediately following the hearing, with adoption by the Executive (EX) Committee planned for the NAIC 2009 Winter National Meeting. *Please note the 2010 budget proposal includes 180 pages and is set up for duplex printing. NAIC 2009 BudgetThe Executive (EX) Committee adopted the NAIC 2009 Budget at the NAIC 2008 Winter National Meeting. Periodically the Internal Administration (EX1) Subcommittee receives funding requests for projects after the annual budget is approved at the NAIC Winter National Meeting. Generally these projects are of an urgent nature to the NAIC’s annual agenda or its committee structure that were either not known or not solidified at the time the annual budget was prepared. The actions of the Subcommittee in relation to these budget funding requests are fully documented in the minutes of the Subcommittee meetings and the financial impact is summarized in the Reconciliation of Changes to the 2009 Budget. Should you have any questions about the NAIC budget, please feel free to contact Brady Kelley, NAIC Chief Financial and Business Strategy Officer at (816) 783-8011 or Carol Hartley, NAIC Sr. Controller at (816) 783-8038. |
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