Well, this should be interesting.
The National Association of Insurance Commissioners (NAIC) on Monday announced that it had decided to move forward with a review of its corporate governance policies and would be hiring an outside consultant to assist with the process. The review, authorized by the group's Governance Review Task Force, will include a "broad review of the NAIC's organizational structure, committee processes and external engagements," according to the statement. No timeline was given, though the NAIC did say that the RFP will be posted on its Web site upon issuance.
"As in past reviews of NAIC governance, we hope the consultant can assist us in facilitating a thorough evaluation and identifying best practices for us to consider," said Adam Hamm, NAIC President and North Dakota Insurance Commissioner.
The move follows months of infighting at the NAIC, highlighted by a December 2013 letter from Connecticut Insurance Commissioner Tom Leonardi to commissioners accusing the NAIC of a variety of governance issues and calling out the association for what was then called a "clumsy, one-sided and fraught process of decision-making." The letter also alleged that the decision to appoint last year's president, Kevin McCarty of Florida was, "to give the Federal Insurance Office (FIO) one of the NAIC's three seats on the IAIS Executive Committee."
The NAIC Executive Committee had previously rejected the move to hire an outside consultant to review the association's policies.
© Arc, 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.