Market Regulation and Consumer Affairs (D) Committee
Market Analysis Procedures (D) Working Group
The NAIC began the Market Conduct Annual Statement (MCAS) in 2002 with the goal of collecting uniform market conduct related data. The MCAS provides market regulators with information not otherwise available for their market analysis initiatives. It promotes uniform analysis by applying consistent measurements and comparisons between companies.
Due to a proposal to centralize the data, no new states will be added for collection of 2009 information in 2010. In 2011, additional states will be collecting MCAS data.
At the 2008 Fall National Meeting, the NAIC Executive Committee adopted a proposal to find the best possible way to collect MCAS data according to a two-part plan:
- Short-Term: The first part of the plan provides for the transfer of MCAS data collected in 2009 by the 29 participating states to the NAIC for storage, aggregation and analysis in the existing Access Database format. The proposal also provides direction for NAIC staff to analyze the aggregated data and identify strengths and weaknesses in the data currently being collected.
- Long-Term: The second part of the plan focuses on the long-term commitment of the NAIC to centralize the collection of market conduct data.
The adopted 2010 budget includes funding to build an on-line data collection tool located on the NAIC website that will be made available for use by industry. In 2011, companies will be able to submit their data directly to each state through this single on-line tool.
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 2003 and 2007 with an operating system of Microsoft XP Service Pack 3 and up. An Access Runtime version of each database is available for companies that do not have Microsoft Access. A company may obtain the Runtime version by sending their U.S. Postal mailing address to the NAIC Staff Support at mcas@naic.org. Links to the MCAS databases are located in the Property & Casualty MCAS and Life & Annuity MCAS sections located on the left side of this page.
Key MCAS Dates
- April 30, 2010 – P&C MCAS submissions due to states
- June 30, 2010 – L&A MCAS submissions due to states
- October 1, 2010 – P&C report cards mailed/emailed
- November 1, 2010 – L&A report cards mailed/emailed
- November 15, 2010 – NAIC emails data calls to Market Conduct Contacts
MCAS Call Letters
Participating states request MCAS information by a call letter sent to each company. Sent annually in November, the addressee of the call letter is the Market Conduct Contact 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 Jurat Page of the company’s Financial Annual Statement.
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 from each state where they filed the MCAS. The report card includes information about the company ratios in relation to the statewide industry ratios and enables companies to identify areas where opportunities may exist to improve performance. Company report cards are sent to the designated contact for the overall MCAS project. Participating states may provide the report card by one of several methods. The participating state may send hard-copy report cards to the designated company contacts for MCAS, e-mail report card information, or post statewide industry ratios on their website so companies can compare the posted statewide ratios to the information found in their own database.
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.
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).
Requests regarding the following must be forwarded to the contact person for the appropriate state:
- extend filing deadlines;
- waive filing requirements;
- assist with data errors or warnings; or
- provide clarification regarding data definitions.
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