NAIC/Industry Liaison Committee
December 2, 2007
The Industry Liaison Committee met on December 2, 2007. The Committee did not meet during the NAIC September National meeting.
During the meeting, the Committee:
- Received comments from Dave Snyder, AIA; Deidre Manna, PCI; Marsha Harrison, NAMIC who presented questions on whether the NAIC has a formalized process for formulating and approving its policy positions, particularly in the context of congressional testimonies. They asked about what it entailed, whether they could participate in it and whether the NAIC would consider adopting a formal process for developing policy positions.
- They pointed to three (3) categories of occurrences that gave rise to their confusion on NAIC policy positions – 1) congressional testimony that seemed to be in conflict with working groups on the same issue, for example, NAIC testimony in favor of an “all perils” approach to insurance when the working group had rejected the policy; 2) NAIC members in their individual capacities, expressing ideas not known to be NAIC positions but advertised or shown on the NAIC website; 3) NAIC news or press releases praising actions by congressional members when it was not known to be settled NAIC policy or principles. They asserted that this diversity in the regulatory community could lead to confusion.
- Chair McRaith clarified whether they had questions of substance about certain NAIC policies or questions of process. He established that the threshold question was about process. With respect to process, he explained that it was straightforward and not uncommon – staff would notify Commissioners, analyze issue(s), receive feedback, prepare a draft, circulate for comments, integrate and prepare it for final submission. Commissioner Hudson said that with respect to the NAIC position on the Klein/Mahoney natural catastrophe bill, she did not agree with the NAIC position and felt it was not good for Ohio.
- Received comments from Eric Goldberg, AIA, on disaster reporting and confidentiality concerns with respect to data sharing by regulators to third parties. He explained that state regulators, through the NAIC, and in the wake of natural disasters, are moving in the direction of sharing data with the NAIC or other outside vendors. He stated that the insurance industry is concerned about the scope and timing of these data requests. Mr. Golberg stated that entering into NDAs or confidentiality agreements with insurance companies would be more efficient and easy.
- Chair McRaith asked if there had been any data breaches. Mr. Goldberg was not aware of any. Commissioner Voss stated that the NAIC had a process for accepting confidentiality concerns on data collection through the E Committee which will be meeting on Tuesday, December 4, for formal presentation and its implementation plans. Chair McRaith stated that he was looking for “constructive not destructive dialogue in this issue.”
Action items: There were no action items.