HOUSTON–The National Association of Insurance Commissioners, at its meeting here yesterday, approved a 2008 budget with expenses increased by more than 2 percent.

NAIC's 142-page, $68.3 million proposed spending plan was approved unanimously at an NAIC plenary session.

The budget foresees a 5.09 percent increase in revenues, up $3.3 million from 2007's projected $65 million. Expenses would increase to $66.5 million in 2008, up 2.55 percent from $65 million in 2007.

The new budget includes an item to fund a full-time NAIC employee who will be loaned to the staff of the International Association of Insurance Supervisors, Basel, Switzerland in order to provide support and enhance IAIS internal administration and transparency related to the NAIC.

It also provides funds to enhance the support services provided by the NAIC's Market Regulation Division to help states implement insurance modernization.

Three new education programs are included for 2008 on fraud investigation, risk-based capital and financial analysis.

NAIC staff began working on the budget in May and formally presented it to the membership in October. A public hearing was held in November to provide insurance trade associations and consumer representatives, as well as NAIC members, an opportunity to provide comments.

NAIC President Sandy Praeger, who is the Kansas insurance commissioner, noted that the proposed budget had not received much criticism from insurance industry participants.

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NAIC Approves 2008 Budget

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