PCI Outlines Key Issues at the 2016 NAIC Spring National Meeting
CHICAGO - The Property Casualty Insurers Association of America (PCI) will be highly engaged at the National Association of Insurance Commissioners (NAIC) Spring National Meeting in New Orleans, April 1 – 6, 2016.
PCI will be testifying at the Market Regulation and Consumer Affairs (D) Committee’s Big Data Public Hearing, which is intended to provide regulators with a broad understanding of how big data is being used in the insurance industry, the impact of its use on consumers and how they can use big data for regulatory purposes.
“Big data helps insurers improve customer service and add value throughout the entire customer experience,” said Deirdre Manna, vice president political engagement and regulatory affairs for PCI. “Additionally, its use can help fight fraud and in the case of usage based insurance (UBI), help drivers eliminate risky behaviors which improves highway safety. However, a too constrictive regulatory approach to big data could cause both insurers and regulators to become increasingly irrelevant to modern consumers.”
During the Spring Meeting, PCI will be working closely with the Group Capital Calculation (E) Working Group which is holding its initial meeting on Sunday, April 3. The Working Group was created to develop a group capital calculation for U.S. insurance groups based on a risk based capital (RBC) aggregation approach.
“PCI supports the RBC aggregation concept in particular, so long as it remains a calculation for the use of a group’s supervisors, and not an enforceable requirement,” said Manna.
The activities of the Climate Change and Global Warming (C) Working Group remain a priority for PCI. The working group is expected to hear a report on Florida’s climate resiliency and adaption activities, including a joint vulnerability investigation and risk financing project that is examining the structural vulnerability of homes in the Florida Keys. PCI will monitor the discussions on topics such as how examiners are using the questions related to climate change risk in the Financial Condition Examiners Handbook and other topics during the meeting.
At the Industry Liaison meeting, PCI will advocate for more transparency at international insurance regulatory standard setting bodies, including the Financial Stability Board (FSB) and the International Association of Insurance Supervisors (IAIS). We will also recommend ongoing dialogue with our federal and state representatives as to their views and positions before, during and after international discussions on insurance regulatory issues. PCI will also advocate for better procedures at IAIS in terms of providing us pre-consultation drafts and opportunities to discuss them with the IAIS working groups.
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