The NAIC approved its 2020 budget. The budget is based on $114.5 million in operating revenues and operating expenses of $124.5 million. The proposed budget includes 5 fiscals and these fiscals are included in the budgeted numbers. The proposed fiscals are in alignment with the State Ahead strategic plan and enhance the important regulatory support provided to the members. In addition, total funding of $324,500 was approved by the Executive (EX) Committee to hire a firm to conduct a SERFF assessment during the first half of 2020 which increases 2020 operating expenses to $124.8 million.
After including nearly $3.2 million of investment income, the NAIC’s proposed budget reflects a reduction in Net Assets of $7.2 million. This budgeted reduction reflects the NAIC’s commitment to fund many of the State Ahead initiatives by leveraging its current financial position with minimal changes in the revenue structure.
Three international regulatory authorities were approved by the NAIC as Reciprocal Jurisdictions. Under the NAIC's Process for Evaluating Qualified and Reciprocal Jurisdictions (Process), the Bermuda Monetary Authority (BMA); Japanese Financial Services Agency (FSA); and Swiss Financial Market Supervisory Authority (FINMA) will be placed on the NAIC List of Reciprocal Jurisdictions effective January 1, 2020.
The U.S. Virgin Islands Office of Insurance is now accredited under the NAIC Financial Regulation Standards and Accreditation Program. It was the first accreditation for the territory and was announced at the Fall National Meeting in Austin, TX.
I want to extend a warm welcome to my fellow commissioners and regulators as we gather in Austin. Over the past two decades, Texas’s capital city has become a major hub for the tech industry. This makes Austin an ideal place to discuss how technology is shaping the insurance industry – and the need for regulators to stay abreast of developments.
The NAIC Financial Regulation Standards and Accreditation (F) Committee voted to accredit the insurance departments of Colorado, Massachusetts and New York. Accredited insurance departments undergo comprehensive, independent review every five years to ensure they meet financial solvency oversight standards.