ORLANDO, Fla. (April 6, 2019) — The National Association of Insurance Commissioners (NAIC) today released its 2018 Annual Report Shaping the Future. The report outlines the financial health of the NAIC, focuses on new initiatives and operations directly affected by the budget, and illustrates the efforts state insurance regulators made in safeguarding insurance markets and protecting consumers.
"We are pleased to report in 2018 we continued to deliver consistent and value-added services to our stakeholders while taking appropriate measures to strengthen our state-based regulatory systems," said Julie Mix McPeak, the NAIC's Most Recent Past President and Commissioner of the Tennessee Department of Commerce and Insurance.
The annual report provides a review of regulatory activities in the following areas: operations and technology; financial regulation; consumers and markets; and health, federal and international policy.
The annual report also provides updates on the NAIC's ambitious three-year strategic plan, State Ahead, which was launched in January 2018. "We are one year in and very pleased with the progress already made," said Eric Cioppa, NAIC President and Maine Superintendent of Insurance. "State Ahead has helped us set realistic timetables and clear objectives for important projects and helped the organization keep projects on target. The NAIC and its stakeholders are faced with many new challenges; State Ahead provides clear guidance as we navigate through the next two years."
Regarding finances, the NAIC reported 2018 operating revenues of $105.7 million with expenses and net investment losses of $108.6 million, resulting in a net asset reduction of $2.8 million after inclusion of a defined pension plan adjustment of $0.1 million. As of Dec. 31, 2018, the NAIC had net assets of $131 million.
Seventeen State Ahead projects were completed in 2018 and 46 projects are currently active, with 32 more beginning this year or in 2020. State Ahead is built on the premise that the NAIC will evolve with the market while continuing to support its members as they execute the fundamentals of state-based insurance regulation.
The annual report includes the organization's audited financial statements and features a video in which McPeak and Cioppa – along with NAIC Chief Executive Officer Michael F. Consedine and NAIC Chief Operating Officer and Chief Legal Officer Andrew J. Beal – provide a recap of the year.