The 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 a high level of disclosure for a non-profit budget. Throughout the development of the NAIC's budget, there are numerous and detailed reviews by all levels of management, the NAIC Officers, the Internal Administration (EX1) Subcommittee, and the NAIC Executive (EX) Committee. As stated in Article IV of the NAIC Bylaws, the budget is released to the public for comment before final consideration and adoption.
NAIC 2014 Budget Proposal
The National Association of Insurance Commissioners' (NAIC) proposed 2014 budget is now in the approval process, following months of development by NAIC leadership, the Internal Administration Subcommittee, Executive Committee and executive staff.
“The 2014 proposed budget reflects the NAIC’s commitment to prudently manage expenses while investing in important projects to enhance the association’s ability to evolve with changes in insurance regulation,” said Adam Hamm, NAIC President-Elect and North Dakota Insurance Commissioner. “The NAIC provides its members with the tools and resources necessary to regulate companies in a sound and cost effective manner.”
The NAIC 2014 proposed budget includes total revenues of $93.2 million and total expenses of $91.8 million, which represents a 3.68% and 3.87% increase, respectively, from the 2013 budget.
There are eight Business and Fiscal Impact Statements (fiscals) proposed in the 2014 budget:
State Based Systems (SBS) Software Enhancement and Technology Compliance Initiative. This is Phase II of a multi-year project to redesign SBS services by updating the SBS architecture and tool set, providing enhanced performance, stability and scalability.
Integrated Securities Information System (ISIS) Rewrite. This is Phase I of a multi-year initiative to redesign and enhance the existing systems that support the processing of data/information for the Securities Valuation Office, the Capital Markets Bureau and the Structured Securities Group.
Human Resources Management Information System. This initiative is an upgrade to the current human resource and information system to provide increased functionality and improved performance over the current system.
SERFF Public Access Implementation. This initiative will enable a state to leverage SERFF via the state website to facilitate access to filings the state has identified as subject to public access, thereby reducing the state’s back-office and support costs.
NAIC and States’ Resource for Principle-Based Reserving (PBR) Valuation. This initiative will provide support to states in their implementation of PBR.
NAIC and States’ Resource for Own Risk and Solvency Assessment (ORSA). This initiative will provide support to states in the implementation of the Risk Management and Own Risk and Assessment (RMORSA) Model Act.
Process for Developing and Maintaining the NAIC List of Qualified Jurisdictions. This proposal will provide the support necessary to conduct the reviews required by the Credit for Reinsurance Model Law (#785) and the Credit for Reinsurance Model Regulation (#786).
NAIC Educational Outreach. This initiative will educate domestic and international policymakers about the merits and effectiveness of the U.S. regulatory system.
Click HERE to view the NAIC's proposed 2014 budget.
*Please note the 2014 proposed budget is over 200 pages and is set up for duplex printing.
A public hearing on the NAIC 2014 Proposed Budget is scheduled for Tuesday, November 26, 2013 at 12:00 p.m. EST/11:00 a.m. CST/10:00 a.m. MST/9:00 a.m. PST/ 7:00 a.m. Hawaii. Please provide any written comments on the proposed budget to Jim Woody at email@example.com by November 15, 2013.
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For those without internet access or unable to pre-register: Please dial (877) 270-2148 or (412) 902-6510, and ask for NAIC 2014 Budget Public Hearing.
For regulators, legislators, and consumer representatives joining the conference call, please dial 866-332-4905 and ask for the NAIC 2014 Budget Public Hearing.
NAIC 2013 Budget
The NAIC adopted its 2013 Budget during a special joint conference call of the Executive and Plenary Committees. The budget includes total revenues of $82.3 million and total expenses of $81.2 million, excluding the structured securities project.
Periodically the Executive (EX) Committee and the Internal Administration (EX1) Subcommittee receive funding requests for projects after the annual budget is approved. 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. Their impact is fully described as part of the 2013 projections included within the 2014 budget proposal.
Should you have any questions about the NAIC budget, please feel free to contact Jim Woody, Chief Financial Officer at (816)783-8015 or Carol Hartley, Senior Controller at (816)783-8038.