NAIC Initiates 2024 Budget Approval Process

The National Association of Insurance Commissioners (NAIC) has released its proposed 2024 budget following months of development by NAIC officers, the NAIC Internal Administration (EX1) Subcommittee, and the NAIC Executive (EX) Committee, as well as input from NAIC staff. 

“The 2024 budget equips the NAIC to continue its support and enhance the services provided to the nation’s chief insurance regulators,” said Andrew N. Mais, NAIC President-Elect and Commissioner of the Connecticut Insurance Department. “The business of insurance and insurance regulation is evolving at a rate never seen. Whether through the introduction of emerging technologies or responding to challenges regarding the frequency of catastrophic losses, this budget will position the NAIC to further assist regulators in their invaluable efforts. By investing additional resources to enhance data availability, increase technical education, and improve various system infrastructures, the NAIC will remain in a strong position to support regulators’ mission of ensuring insurance markets remain solvent and consumers are protected.”

The NAIC's proposed 2024 budget includes total revenues (including investment income) of $157.3 million and total expenses of $158.4 million, which represents a 6.5% increase in revenues and a 5.2% increase in expenses from the 2023 budget. 

The proposed 2024 budget includes six fiscal impact statements (fiscals): 

1.    System for Electronic Rates & Forms Filing Modernization—2024 Transition Stages

This project is in its third year of a multiyear initiative to improve the System for Electronic Rates & Forms Filing (SERFF) platform. In 2024, users will move into the platform, beginning with the Interstate Insurance Product Regulation Commission (Compact) and then life users. In 2025, property/casualty (P/C) and health will transition, followed by plan management in 2026. This fiscal includes the addition of three headcount.

2.    Enterprise Data Management—Phase III

This fiscal continues to expand the Enterprise Data Platform by integrating additional data sets, such as State Based Systems (SBS), SERFF, and the Online Premium Tax for Insurance (OPTins), and provides regulators with systems training. This fiscal includes the addition of two headcount for dataset integration and ongoing system maintenance.  

3.    Expand NAIC Expertise—2024

Recognizing the need for specialty skill sets in a variety of areas, this fiscal includes the addition of four headcount:

•    P/C Modeling Analyst—to assist with rising demand for rate reviews.
•    Cybersecurity Policy Advisor—to support cybersecurity and cyber insurance policy discussions with the appropriate regulatory bodies.
•    Two Center for Insurance Policy and Research (CIPR) analysts—to support data calls, dashboarding, and other research-related items. 

4.    NAIC Education and Training Modernization Project 

This project expands and modernizes training and professional development programs available to insurance regulators. In addition to system modernization, the project envisions expanding offerings up to as many as 40 professional designations. This fiscal includes the addition of two headcount.

5.    IT VISION System Enhancements—2024

This is a multiyear information technology (IT) project necessary to optimize multiple issuer and security identifiers, enhance document management, ensure the system is flexible for future business capabilities, and upgrade the security valuation platform technology utilized by the Securities Valuation Office (SVO). This fiscal includes the addition of three headcount.

6.    Uniform Certificate of Authority Application—Phase II

This project continues development and will integrate additional applications into the Uniform Certificate of Authority Application (UCAA) platform, including corporate expansion and domestic and foreign corporate amendments. This fiscal includes the addition of one headcount.  

The proposed 2024 NAIC budget can be found on the NAIC’s About Budget page.

Proposed NAIC 2024 Budget Briefing With Interested Parties

A budget briefing is scheduled for Wednesday, Nov. 1, 2023, at 3:00 p.m. ET/2:00 p.m. CT/1:00 p.m. MT/12:00 p.m. PT. The purpose of this briefing is to provide an overview of the proposed budget in advance of the Nov. 17, 2023, comment deadline. 

Participants must pre-register to participate in this briefing. Participants will receive WebEx information upon registration.

Public Hearing

A public hearing will be scheduled in late November/early December. Written comments on the proposed budget are due to Jim Woody at jwoody@naic.org by Nov. 17, 2023. Details for the public hearing will be posted on the NAIC website as soon as they are available.