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In 2002, the NAIC began the Market Conduct Annual Statement (MCAS) pilot project. The goal of the project is to provide a uniform system of collecting market related information to serve the needs of all participating states. The MCAS provides regulators with information not otherwise available for their market analysis initiatives. It promotes uniform analysis by applying consistent measurements and comparisons between companies, which allows all companies to be compared on an equal basis.
In 2004, NAIC membership voted to make the MCAS a permanent project. To limit the impact on insurers, the NAIC decided to gradually add new states, which also enabled states to get the needed resources in place to handle the MCAS data. Previously, it was announced that three new states (Indiana, Louisiana and South Carolina) would be collecting 2007 information in 2008. Recently, Indiana elected not to collect data in 2008 after all.
Database Information
Unlike financial statements, the Life/Annuity and Property/Casualty Market Conduct Annual Statements are not actual forms, but Microsoft Access databases. The MCAS databases are compatible with Microsoft Access 2000 and Microsoft Access XP Service Pack 1. An Access Runtime version of each database is available for companies that do not have Microsoft Access 2000. A company may obtain the Runtime version by sending their U. S. Postal mailing address to the NAIC Staff Support listed on this page. Links to the MCAS databases are located under Committee Documents on the right.
MCAS Call Letters
Participating states request MCAS information by a call letter sent to each company. Sent annually in November, the addressee of any given call letter is the first contact person designated on the jurat page of the company’s Financial Annual Statement for the prior year.
Insurance Company Contact Form
Every company required to participate in the MCAS project must provide a contact person responsible for the overall project. Companies must submit the required contact information on the Market Conduct Annual Statement Insurance Company Contact Form by December 31st.
A separate contact form must be completed for each company required to file a MCAS. Do not complete one form for an entire group. If the contact information for a company changes at any time during the project, the company must complete and submit a new contact form. The NAIC provides access to the contact information to all participating states.
Company Report Cards
To assist participating companies in gaining a better understanding of where they fit in the insurance marketplace, each company will receive a “report card” letter from each state where they filed the MCAS. The letter includes information about the company ratios in relation to average industry ratios and enables companies to use this information in identifying areas where opportunities may exist for the company to improve its performance. Company report cards are sent to the designated contact for the overall MCAS project.
Market Conduct Examinations
It is important to note that even if a company falls outside of the norm, it does not mean a market conduct examination will be called on the company. Alternatively, participation in the MCAS is no guarantee that a market conduct examination will not occur.
Market Conduct Annual Statement Procedures
The adopted procedures establish the policies and procedures with respect to proposed amendments to the Market Conduct Annual Statement blank and instructions. Additionally, timeframes were established for the dissemination of call letters and report cards.
Key MCAS Dates
- October, 2007 – Companies update contact information with NAIC; states update contact and submission information with NAIC
- November 15, 2007 – NAIC emails data calls to company contacts
- December 31, 2007 – Companies update contact information with NAIC.
- April 30, 2008 – P&C MCAS submissions due to states
- June 30, 2008 – L&A MCAS submissions due to states
- October 1, 2008 – P&C report cards mailed/emailed
- November 1, 2008 – L&A report cards mailed/emailed
NAIC Involvement
The Ohio Department of Insurance has transitioned MCAS support to the NAIC effective March 1, 2008. At this time, NAIC staff does not collect or have access to the MCAS data.
Questions
NAIC Staff can:
- provide copies of the Access Runtime version of the Market Conduct Annual Statement; and
- answer questions emailed to mcas@naic.org related to the business activities of the Market Conduct Annual Statement (D).
However, NAIC Staff cannot:
- extend filing deadlines;
- waive filing requirements;
- assist with data errors or warnings; or
- provide clarification regarding data definitions (other than those listed on this webpage).
Questions of that nature should be sent to the contact person for the appropriate state. |
