NAIC 2016 Budget
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 nonprofit budget. Throughout the development of the NAIC's budget, there are numerous and detailed reviews by all levels of management, the NAIC Officers, the NAIC Executive (EX) Committee, and the Internal Administration (EX1) Subcommittee. As stated in Article IV of the NAIC Bylaws, the budget is released to the public for comment before final consideration and adoption.
The National Association of Insurance Commissioners (NAIC) 2017 budget was approved on Dec. 13, 2016, following a lengthy internal vetting process involving NAIC officers, the NAIC Internal Administration (EX1) Subcommittee, the NAIC Executive (EX) Committee and NAIC staff.
"Over the past two years the NAIC has made substantial investments in technology initiatives, including cybersecurity, which is consistent with the organization's goal of providing high-quality services to state insurance regulators, consumers and insurance industry users," said Ted Nickel, NAIC President-Elect and Wisconsin Insurance Commissioner. "In 2017 the NAIC will finish implementing a number of enhancements born out of these recent investments. This budget prudently manages expenses while providing reasonable funding to continue the organization's support of state regulators in their goal to protect consumers and ensure a solvent insurance industry."
The NAIC's 2017 budget includes total revenues (including investment income) of $101.9 million and total expenses of $102.1 million, which represents a 4.4 percent increase and 0.4 percent decrease respectively, from the 2016 budget.
The 2017 budget includes six Fiscal Impact Statements (fiscals):
A fee calculator is available for insurance companies interested in determining their 2017 database filing fee using the formulaic approach.
The NAIC's 2017 budget.
*The budget is over 200 pages and is set up for duplex printing.
The NAIC adopted its 2016 Budget during the Joint Meeting of the Executive and Plenary Committees at the 2015 Fall National Meeting. The budget includes total revenues of $97.6 million and total expenses of $102.5 million.
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 2016 projections included within the 2017 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 Thompson, Senior Controller at (816) 783-8038.