NAIC to launch climate risk dashboard in 2024
The National Association of Insurance Commissioners has set climate change and resilience as two of its strategic priorities for 2024.
Prioritising mitigation, consumer education, and collaboration to address increased climate-related risks continues as a priority, while the NAIC said it will launch a comprehensive Climate Risk Dashboard to measure and evaluate protection gaps as well.
On resilience, NAIC president Andrew Mais (Pictured) said it will develop a tailored "Framework for Insurer Investment Regulation" to enhance financial oversight and adapt to evolving investment strategies.
It will also implement a modernised Economic Scenario Generator and advance the Asset Adequacy Testing framework (AG 53) to bring greater transparency and precision to the assessment of cash flows for insurers' structured securities holdings.
Mais, who is also Connecticut Insurance Department (CID) Commissioner unveiled the 2024 NAIC Strategic Priorities this week.
As part of the US system of state-based insurance regulation, NAIC serves as the US standard-setting organisation for insurance regulation and provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers.
The NAIC Strategic Priorities guide state insurance regulators in addressing evolving issues and ensuring consumer protection at the national level.
This focused approach aims to align state regulatory efforts fostering collaboration, analysis, and coordinated action. Empowered by these priorities, insurance regulators are poised to advance state-based solutions, effectively navigating the ever-changing landscape of insurance-related challenges.
“The regulatory priorities for 2024 underscore the Department’s dedication to developing innovative and impactful solutions that continue to protect Connecticut consumers, and directly address the changing needs of the insurance sector and our local markets," said Mais.
Other NAIC 2024 Priorities & Highlights (in alphabetical order) are:
Climate Risks/Natural Catastrophes and Resilience:
• Seek to create new resilience tools, advocate for pre-disaster mitigation funding, and develop scenario analysis resources for state regulators.
Insurer Financial Oversight and Transparency:
Marketing of Insurance Products:
• State insurance regulators will continue to take a multi-pronged approach to protecting consumers against deceptive and misleading marketing strategies.
• Coordinate efforts with Congress and relevant federal agencies to strengthen information sharing, oversight, and enforcement.
• Develop a tool hosted at NAIC.org for consumers to check insurance producers' licences with additional information available on state insurance department websites.
• Advocate for statutory or regulatory changes to restore states' regulatory authority over the Medicare Advantage market and to help address protection gaps for older adults.
Race and Insurance, Financial Inclusion, and Protection Gaps:
• Lead initiatives to address the interconnected challenges of race and insurance, financial inclusion, and protection gaps.
• Identify and focus on closing protection gaps and promoting financial inclusion.
• Receive updates and recommend statutory or regulatory changes to ensure equitable insurance practices.
Use of AI by Insurers and Cyber Risk:
• Foster educational and engagement opportunities regarding the use of artificial intelligence and emerging technologies.
• Lead initiatives to support the adoption of the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers.
• Research and monitor trends, propose a regulatory framework for overseeing third-party data and predictive models, and complete the development of the Cybersecurity Event Response Plan.
• Safeguard consumers’ sensitive information through modernised and enhanced privacy protections.
In addition to the NAIC 2024 priorities, the CID will continue its commitment to consumer protection and the overall mission of providing guidance, support, and education while regulating the industry in a way that promotes fair competition and helps ensure insurance is available to everyone.
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