The National Association of Insurance Commissioners (NAIC) has released its proposed 2027 budget, which supports the shared expertise, data, technology, and services state insurance regulators rely on as they oversee a changing insurance marketplace and protect policyholders.

Governed by the chief insurance regulators of the 50 states, the District of Columbia, and five U.S. territories, the NAIC provides a forum for regulators to develop standards, coordinate oversight, analyze insurance markets, and share regulatory tools, while decisions about insurance regulation and enforcement remain with the regulators in each jurisdiction.

“The NAIC’s proposed 2027 budget is focused on ensuring that insurance regulators have the resources and capabilities to respond to a rapidly changing industry,” said Rhode Island Department of Business Regulation Director and NAIC President-Elect Elizabeth Kelleher Dwyer. “Investments in technology, data, regulatory expertise, and Member services help strengthen oversight, support sound insurance markets, and advance our shared commitment to protecting consumers.”

“The NAIC invests thoughtfully in shared resources, technology, and expertise as we support state insurance regulators. This budget focuses on modernizing critical systems, strengthening capabilities, and delivering practical value to our Members, all with a commitment to financial discipline,” said NAIC CEO Jeff Johnston.

Budget Overview

The proposed 2027 budget includes $191.5 million in operating revenue and $204.1 million in operating expenses. Compared with 2026 projections, revenue is expected to increase 3.7% ($6.9 million), while expenses are projected to increase 5.5% ($10.6 million). The resulting $12.6 million operating gap is partially offset by $7.7 million in budgeted investment income, leaving a net budgeted gap of $4.9 million.

Priority Investments and Member Services

The proposed budget responds to growing regulatory demands associated with expanding data needs, artificial intelligence, cybersecurity, complex insurer investments and capital structures, natural catastrophe risk, and insurance markets that increasingly operate across state lines and globally. Resources would support modernization of core regulatory platforms, more effective data management and analysis, financial and market oversight, and training and other services for insurance departments.

Fiscal Impact Initiatives

The proposed budget includes targeted initiatives to modernize regulatory systems that support state regulators and strengthen the regulatory workforce through training. The initiatives include: establishing a more authoritative source for company and contact data to support the Financial Data Repository; advancing the next stages of the System for Electronic Rate and Form Filing (SERFF) modernization, including platform development, data migration, training, and workflow improvements; and partnering with the Society of Financial Examiners on online training and credentials for financial examiners and insurance regulation professionals.

The budget also proposes targeted capacity enhancements in financial regulation, data and policy, technology and platform support, Member services and education, and business operations. These enhancements are intended to address workload and service demands, support technology implementation and ongoing operations, and build the specialized capabilities needed to serve Member departments.

Public Input and Next Steps

A virtual budget briefing for interested parties is scheduled for Tuesday, Nov. 3, 2026, at 3:00 p.m. ET (2:00 p.m. CT, 1:00 p.m. MT, and noon PT). Participants must preregister to receive meeting details.

Written comments on the proposed budget must be submitted to Jeff Ahlers and Carol Thompson at jahlers@naic.org and cthompson@naic.org by noon CT on Nov. 11, 2026. A public hearing is scheduled for Dec. 1, 2026. Additional details will be posted on the NAIC website.

The proposed 2027 NAIC budget is available on the NAIC website’s About Budget page.