NAIC Provides Insight on Trends in Insurance Regulation

WASHINGTON, D.C. (Oct. 26, 2016) — NAIC President and Missouri Insurance Director John M. Huff spoke at a legal conference hosted by a major insurer today where he highlighted the comprehensive group supervisory framework implemented by U.S. insurance regulators. Similar to regulators' efforts in other sectors and jurisdictions, state insurance regulators have developed and refined authorities to oversee insurance groups across their full spectrum of operations since the 2008 financial crisis. State regulators have been expeditious and transparent in their efforts to implement new authorities.

"The scope of state regulatory authority to effectively oversee insurance groups and their affiliates, regardless of their size, structure or location, has evolved greatly over the last few years, and builds on a proven track record of supervision that was already effective in protecting consumers and ensuring stable markets," said Huff.

Huff described the expanded powers of state regulators under the NAIC Model Holding Company Act, which enhances the U.S. group-wide supervisory framework; requires additional enterprise risk disclosure; provides regulators broad access to information while protecting confidentiality; and bolsters state authority as leaders in supervisory colleges for key firms. Huff also addressed implementation of the Own Risk Solvency Assessment (ORSA), which fosters an effective level of enterprise risk management (ERM) at insurers and provides a group-level perspective on risk and capital as a supplement to the existing legal entity view. 

"States have made remarkable progress to not only craft these authorities in a thoughtful and transparent manner," said Huff, "but implementation has been embraced by state legislatures, and our Accreditation Program ensures that virtually all states have, or will soon have, these tools to better supervise the industry and protect consumers."

U.S. group supervision is capable and comprehensive when combined with new corporate governance requirements and reporting for insurers' boards of directors and management, robust information sharing and confidentiality protections, state collaboration through established NAIC processes and ongoing development of a group capital calculation.

Jillian Froment, Deputy Director of the Ohio Department of Insurance, also spoke at the conference. Her remarks focused on technology, big data and the NAIC's efforts on the Insurance Data Security Model Law. The legal conference was hosted by the insurer Nationwide in Columbus, Ohio.

About the NAIC

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit

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