NAMIC Beefs Over NAIC Consumer Web Site

By E.E. Mazier

NU Online News Service, Jan. 22, 11:59 a.m.EST? An insurance industry trade group is complaining thatthe consumer information Web site launched by the NationalAssociation of Insurance Commissioners could damage carriers'reputations.

The gripes are from the Indiana-based National Association ofMutual Insurance Companies. NAMIC previously objected last Decemberwhen the NAIC announced the launch of the Consumer InformationSource (CIS) Web site, a product of the NAIC's Consumer ProtectionWorking Group.

At the time, the NAIC declared that the Web site was a new toolthat allowed "consumers to locate basic information about aspecific insurance company, including amount of premiums written,assets, liabilities and licensing information."

Additionally, the Web site would permit consumers to filecomplaints and to review statistical information on previouslyresolved complaints against an insurer, the NAIC said.

In launching the site, the NAIC ignored NAMIC's request that thelaunch be delayed until certain issues could be addressed.

"The data that is currently available is subject to differentformats and standards through many state insurance departments,"noted Peter Bisbecos, NAMIC's legislative and regulatorycounsel.

"Absent a reliable way to translate disparate bits ofinformation into one cohesive database, the likelihood ofmisunderstandings and damage to business reputations issubstantial," he explained.

Mr. Bisbecos further observed that the public would likelyattribute "a high degree of credibility" to a national consumercomplaint database sponsored by the NAIC and intended as acollection of information from the state departments ofinsurance.

For this reason, he continued, it is important to employ andmaintain "exacting standards of clarity and accuracy."

"If the database is not impeccably accurate; consumers relyingon it may errantly choose not to purchase insurance from a qualitycompany, judges and juries may be given inaccurate informationabout a company's behavior and, perversely, companies who behavebadly may escape exposure," Mr. Bisbecos warned.