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) is releasing its proposed 2019 budget, following a lengthy internal vetting process involving NAIC officers, the NAIC Internal Administration (EX1) Subcommittee, the NAIC Executive (EX) Committee and NAIC staff.
"The 2019 budget outlines resources the NAIC intends to commit to the needs of its current operations in addition to goals set out in the State Ahead strategic plan," said Eric A. Cioppa, NAIC President-Elect and Maine Superintendent of Insurance. "Officers, members and NAIC staff will ensure the best use of its financial resources and continue prudent financial management, while we ramp up efforts to meet the accelerating pace of innovation and change."
The NAIC's proposed 2019 budget includes total revenues (including investment income) of $110.7 million and total expenses of $118.8 million, which represents a 4.1 percent increase and 9.3 percent increase, respectively, from the 2018 budget.
The proposed 2019 budget includes five Fiscal Impact Statements (fiscals):
The NAIC's proposed 2019 budget
*The proposed budget is almost 150 pages and is set up for duplex printing.
A public hearing is scheduled for Wednesday, Nov. 14, 2018, at 12:00 p.m. ET/11:00 a.m. CT/10:00 a.m. MT/9:00 a.m. PT. Please provide any written comments on the proposed budget to Jim Woody at email@example.com by November 5, 2018.
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NAIC 2018 Budget
The NAIC adopted its 2018 Budget during the Joint Meeting of the Executive and Plenary Committees at the 2017 Fall National Meeting. The budget includes total revenues of $106.3 million and total expenses of $106.4 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 2018 projections included within the 2019 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.