Regulator Reacts To GAO Report

|

By Jim Connolly

|

NU Online News Service, Oct. 3, 1:51 p.m. EDT?Akey regulator involved with states' efforts to improve marketconduct oversight put a positive spin on a federal report whichsaid states should give "increased priority" to developing commonoversight standards and the current system is "inconsistent andspotty."

|

"This confirms we are headed in the right direction," said JoelArio, Oregon insurance administrator. He said regulators at theNational Association of Insurance Commissioners are already takingsteps which the report by the General Accounting Office calls for,such as greater use of market conduct analysis and morecollaboration among states.

|

Mr. Ario is spearheading the Kansas City, Mo.-based NAIC'sefforts to revamp the current system of market conduct regulationin state insurance departments.

|

"The only place where I had a quarrel, in a draft released atthe start of the summer, is that the draft overstated how farregulators still had to go," said Mr. Ario.

|

The report was released along with a Sept. 30 letter to Rep.Michael Oxley, R-Ohio, chairman of the committee on financialservices.

|

The report recommends that "the NAIC and the states giveincreased priority to identifying a common set of standards for auniform market oversight program that includes all states.

|

"These standards should include procedures for conducting marketanalysis and coordinating market conduct examinations.

|

"Further, NAIC needs to establish a mechanism to encourage statelegislatures and insurance departments to adopt and implementstandards," it continued.

|

The report said that while states have market conductregulation, "two key tools?market analysis and on-siteexaminations?are used inconsistently, if at all. The result isinconsistent and often spotty."

|

It added that "formal and rigorous market analysis" is in its"infancy among state regulators" and there is a wide array of waysexaminations are performed.

|

The report said that "it remains uncertain whether NAIC and thestates can agree on and implement a program that will result in thestandardization of market conduct regulation."

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.