NAIC Reorganization Drops 50 Committee Groups

The association said that in addition to its slim-down process, it will also seek greater transparency in proceedings by minimizing the number of closed-door meetings.

"I am very hopeful that we can reduce the number of committee meetings even further and truly prioritize our work. This is only the beginning," said Ernst Csiszar, South Carolina insurance director and the current NAIC president.

Mr. Csiszar commented that one flaw with the NAIC system has been that "we don't prioritize our work."

He remarked that the NAIC tends to engage in "every issue and every problem," forming groups to address any and all problems that come along.

"But our issues are so many and so complex that I think they require focus. Clearly some issues are bigger than other issues, and that should be reflected in how we handle these issues," he said. "I am hopeful that not only can we cut down on the number of meetings but also cut the number of committees, streamline our process and make this more efficient."

Mr. Csiszar also told National Underwriter that the NAIC is aiming to hold as many meetings as possible in open session to improve transparency of regulatory proceedings.

"We are making progress on the operational efficiency as well as on the transparency issue," he said. "There are clearly cases when meetings shouldn't be open because of the nature of the discussion. But when that's the case, we would expect various chairs to give a reason as to why the meeting is not open."

Industry groups also applauded the NAIC's effort this week. "We very much appreciate and support the efforts being made to streamline the organization and to assure the maximum degree of transparency in NAIC proceedings," said David Snyder, vice president and assistant general counsel at the American Insurance Association in Washington, D.C.

"We asked for this?we have told the liaison committee that they ought to focus their activities on the most important issues," said Lenore Marema, vice president of industry and regulatory affairs at the Des Plaines, Ill.-based Property Casualty Insurers Association of America. "They have at least taken a good first cut at it. This is progress. By and large, people like this better."

Despite generally positive reactions, some regulators also voiced concern that the work already being done could be lost in the transition. But Mr. Csiszar assured that past work would be integrated into existing groups. "None of us want to lose the work we've done," he said.