State Ahead is a three-year blueprint for the NAIC's future, showing the way toward building on existing strengths as a nexus for innovation and a hub of resources for insurance departments to draw upon. Here's what's new.
SELECT PROJECT HIGHLIGHTS
- Objective A: Optimize the NAIC's world-class financial data and information for regulator-focused analytics, including predictive analytical tools.
Financial Analysis Tools Redesign (Phase I)
Financial transactions and insurers are ever more complex. The NAIC's Financial Analysis Tools Redesign (FASTR) will assist regulators to perform enhanced solvency oversight. Phase one of the project was focused on a redesign of part of the Financial Profile Report, an automated analysis tool. The new design allows regulators to quickly identify issues and trends while allowing regulators to more easily drill-down, sort and filter financial data. The FASTR 1 project was completed in April and is currently available for regulator use and review via iSite+. User feedback has been collected and is being reviewed to guide the next phases of this initiative.
- Objective C: Optimize market data and regulatory processes to enhance consumer protections.
Market Conduct Annual Statement (MCAS) Redesign
The NAIC is supporting our members in the ever-increasing demand for data collection. As part of this effort, the NAIC is redesigning the Market Conduct Annual Statement (MCAS) to provide state insurance regulators with a solid platform to collect, analyze and share MCAS data. The system is more efficient for filers, is more cost-effective and streamlines the process for adding lines of business. To date under the redesign there have been more than 30,000 MCAS filings across auto, home, life, annuity, long-term care, health, and lender-placed insurance.
- Objective F: Expand training for state insurance regulators at all levels of the departments of insurance.
Professional Designation Program (Phase I)
The NAIC's Professional Designation Program provides state insurance regulators at all levels with an opportunity for professional growth. Encouraging participation in the program enhances the skillsets available in state insurance departments. To raise awareness of the program, the NAIC launched an awareness campaign including in-person meetings and updates to online resources. Enrollment in the program increased 17% during phase one.
- Objective G: Ensure NAIC provides state insurance regulators with technology services that are secure, reliable, and flexible.
System and Organization Control 2 (SOC 2) On-Premise Audit
Safeguarding the information collected and stored at the NAIC is a top priority in an age of increased volume and sophistication of cyber threats. In response, the NAIC has taken measures to enhance our security protocols through a System and Organization Control 2 (SOC 2) audit. The first SOC 2 was comprised of 64 controls modeled after National Institute of Standards and Technology (NIST) guidelines. The results of the first audit were positive in reflecting the strong security protocols and internal controls within the NAIC's infrastructure. The audit report will be used to communicate our security posture to interested third parties and to supplement our Standardized Information Gathering (SIG) assessment.
THEME I: Safe, Solvent and Stable Markets
- Goal 1: Provide state insurance regulators with data, training and tools required to support a collaborative regulatory environment that fosters stable financial markets and reliable and affordable insurance products.
THEME II: Consumer Protection and Education
- Goal 2: Ensure that consumer protection keeps pace with changes in the marketplace and consumers have information and education needed for informed decisionmaking.
THEME III: Superior Member Services and Resources
- Goal 3: Provide optimal services to support state insurance departments and equip them with the necessary talent and resources.
- Goal 4: Optimize the efficiency and effectiveness of the NAIC structure.
Each of our themes and goals will be supported by the investments we make in data, technology and talent. Many of the NAIC's current initiatives and budget for 2018 are designed to lay these foundational pillars on which State Ahead is built.
Planning and Building
In 2018, the NAIC will take the next steps by continuing to build on our foundation started in 2017, as well as planning to assess needs, evaluate technology and set the timeline to meet the goals in State Ahead.
Building Full Speed Ahead
The NAIC will continue to focus on building an infrastructure for data, technology and talent to implement State Ahead. This will include regulator training and consumer education.
By the end of 2020, the NAIC will be positioned to provide its members with new analytics, technology and tools to more effectively regulate their markets.