NAIC Initiates 2022 Budget Approval Process
The National Association of Insurance Commissioners (NAIC) is releasing its proposed 2022 budget, following months of development by NAIC officers, the NAIC Internal Administration (EX1) Subcommittee, the NAIC Executive (EX) Committee and input from NAIC staff.
“The proposed 2022 budget is structured to maintain support of the NAIC member states as they work to protect consumers in this challenging time,” said Dean Cameron, NAIC President-Elect and Director of the Idaho Department of Insurance. “This responsible budget also reflects our commitment to advance resources and technology to meet the needs of the individual states, the industry, the mission of NAIC and the states’ role in regulating the industry while protecting our citizens.”
The NAIC's proposed 2022 budget includes total revenues (including investment income) of $128.8 million and total expenses of $136.3 million, which represents an 8.2 percent increase and 4.4 percent increase, respectively, from the 2021 budget.
The proposed 2022 budget includes three Fiscal Impact Statements (fiscals):
- Financial Data Repository (FDR) Modernization Pre-Work – FDR is a centralized warehouse storing 10 years of annual and quarterly financial statements filed by 4,500+ insurers. Today, the FDR system is over 20 years old, and the technologies used at that time no longer align with current NAIC development tools, making it difficult and time consuming to support. This fiscal requests professional services to assist staff in laying the groundwork for the full modernization effort. In 2022, changes will be made to migrate reporting to a new reporting tool, leverage other applications' functionality where feasible, document current processes, and analyze requirements for the new system.
- SBS State Implementations 2022 – The NAIC has transitioned 31 licensed states to the new updated SBS platform, known as SOLAR, and interest in utilizing SBS remains strong among many of the remaining states. With several new and pending licenses added to existing commitments, the SBS team’s implementation workload is higher than their capacity resulting in the need to augment staff with external resources.
- 2022 NAIC Staffing Requests – Critical business needs and the current capacity of NAIC staff require six new positions be added in the areas of market regulation, macroprudential surveillance, securities valuation, and cybersecurity.
The proposed 2022 NAIC budget can be found on the NAIC’s About Budget page.
Budget Briefing Meeting Details
Proposed NAIC 2022 Budget Briefing with Interested Parties
A budget briefing is scheduled for Wednesday, Nov. 3, 2021, at 12:30 p.m. ET/11:30 a.m. CT/10:30 a.m. MT/9:30 p.m. PT. The purpose of this briefing is to provide an overview of the proposed 2022 budget in advance of the comment deadline of November 19, 2021.
Participants must pre-register to participate in this briefing by clicking here. Participants will receive WebEx information upon registration.
Public Hearing
A public hearing will be scheduled for late November/early December. Written comments on the proposed budget are due to Jim Woody at jwoody@naic.org by November 19, 2021. Details for the public hearing will be posted on the NAIC website as soon as they are available.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.