SAN DIEGO– The National Association of Insurance Commissioners yesterday held the first session of a new panel designed to create a uniform process for monitoring how insurance companies operate in the marketplace.
The new Special Accreditation Standards Working Group, the NAIC said, would function along the lines of the NAIC's Financial Regulation Standards and Accreditation Program.
The new Market Regulation Accreditation Program will establish uniform criterion for assessing whether the states are effectively and efficiently addressing market regulatory issues.
Chairing the new panel is Maryland Insurance Commissioner Ralph Tyler, the Working Group is charged with developing uniform standards, an implementation plan and a way to objectively evaluate if each state is meeting the standards.
"A comprehensive accreditation program with high standards will help us all do a better job of protecting insurance consumers," Mr. Tyler said. "I look forward to open dialogue and input from all parties regarding this important initiative."
As a starting point, the Working Group will focus on the "core competencies" already adopted in the following areas: state resources; market analysis; the continuum of regulatory options; and interstate collaboration.
Oklahoma Insurance Commissioner Kim Holland, who chairs the NAIC Market Regulation and Consumer Affairs Committee, said, "We want to see market regulation held on par with financial regulation. This will only become a reality when market regulators are held to the same high standards as financial regulators."
During its meeting, the Working Group heard a presentation on the NAIC's Financial Accreditation program.
Rhode Island Insurance Superintendent Joseph Torti, III, who chairs the NAIC Financial Regulation Standards and Accreditation Committee, said, "Financial regulation is strong today because of the accreditation process."
"In a similar fashion, market accreditation will help regulators ensure they have the resources they need to meet the requirements of fulfilling this important consumer-protection role," he explained.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.