NAIC CENTER FOR INSURANCE POLICY & RESEARCH
(CIPR) - OVERVIEW
E-REG CONFERENCE
Shanique (Nikki) Hall, CIPR Manager
Anne Obersteadt, Senior Researcher
April 29, 2015
© 2014 National Association of Insurance Commissioners
CIPR Mission
• The Center for Insurance Policy and Research (CIPR)
leverages NAIC resources to collect and analyze
information for use by officials, agencies, and policymakers
in the U.S. and abroad. Through seminars, presentations
and publications, CIPR efforts enhance:
1. Cooperation between federal, state and international
agencies and regulators;
2. Comprehension of insurance-related topics and issues
by thought leaders;
3. The exchange of information between the states and
the federal government; and
4. NAIC and state regulator participation in public policy
decisions affecting insurance and the broader financial
services sector.
CIPR
• The scope of CIPR work includes every initiative at
the NAIC
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Government Relations Office
Regulatory Services Division
Financial Regulatory Services Division
Capital Markets and Investment Analysis Office
Life Insurance and Annuities (A) Committee
Health Insurance and Managed Care (B) Committee
Property and Casualty Insurance (C) Committee
Market Regulation and Consumer Affairs (D)
Committee
– Financial Condition (E) Committee
– International Insurance Relations (G) Committee
CIPR
CIPR Org Chart
Eric Nordman
Director, CIPR and Regulatory Services
Kris DeFrain
Director, Research and Actuarial Department
Shanique (Nikki) Hall
CIPR Manager
Anne Obersteadt
Senior Researcher
Dimitris Karapiperis
Research Analyst III
CIPR’s Website Is Easy To Get To!
CIPR Website
• Go-to source for insurance information.
• The website provides information on current and
emerging insurance regulatory developments,
ongoing CIPR projects, and coverage of a widerange of insurance industry topics.
• www.naic.org/cipr_home.htm
YEAR
2014
NAIC RANKING
43
TRAFFIC
34,396
2013
59
26,441
2012
63
26,524
2011
463
3,127
CIPR Website (Cont’d)
1
2
3
4
5
6
CIPR Key Issues
• www.naic.org/cipr_key_issues.htm
CIPR Key Issues (Cont’d)
TOP KEY ISSUES (2014)
Risk-Based Capital (RBC)
Captives
TRIA (Terrorism Risk Insurance Act)
ORSA (Own Risk and Solvency Assessment)
Usage-Based Insurance
Lender-Placed Insurance
Medical Professional Liability
Flood Insurance (NFIP)
Statutory Accounting Principles
1.
2.
3.
4.
5.
6.
7.
8.
9.
10. AG38
11. Insurance-Linked Securities
12. Principle-Based Reserving (PBR)
Web visits
32,879
22,546
19,083
19,303
15,898
12,458
9,572
9,182
8,290
7,859
6,701
6,107
CIPR Key Issues
• The CIPR Key Issues Index includes a
topical listing of key insurance regulatory
issues.
• Each Key Issue includes detailed
analysis and link to relevant NAIC
activity.
• Index contains over 100 Key Issues and
Legislative Issues Briefs.
• “Insurance Wikipedia”
Key Issue Example
Key Issue Example Cont’d
CIPR
Newsletter
(Cont’d)
• www.naic.org/cipr_newsletter_archive.htm
CIPR Newsletter
CIPR Newsletter
• Provides research for current and emerging
insurance issues and hot topics.
• Newsletter topics include: Life, P/C, Health,
Market Regulation, Financial and International
issues.
• Each issue features 5-7 articles written by
NAIC/CIPR staff as well as invited (external)
TRAFFIC*
authors.
April 2014 Newsletter
July 2014 Newsletter
October 2014 Newsletter
February 2015 Newsletter
Publication date – April 20, 2015.
28,029
58,026
15,737
10,435
CIPR Newsletter (Cont’d)
TOP NEWSLETTER ARTICLES IN 2014
Emerging Regulatory Issues (released Jan 2014)
Life Insurers to Benefit from Rising Interest Rates (Jan 2014)
ORSA Is On its Way (Oct 2012)
The Use of Internal Models in U.S. Insurance Regulation (Oct 2013)
Recent Developments in the Captive Insurance Industry (Jan 2012)
Data at a Glance: Medical Professional Labiality (July 2013)
State of Market Conduct Collaboration (Jan 2014)
Insurance Regulation for Captives and SPVs (July 2014)
A Closer Look at Contingent Deferred Annuity Issues (April 2014)
Managing Longevity Risk (April 2013)
Increasing Importance of Operation Risk Management (Oct 2013)
Navigating the Regulatory Alphabet Soup (July 2014)
CIPR Newsletter (Cont’d)
Over 1,200 new subscribers have joined since the
Newsletter launched in October 2011
CIPR Newsletter (Cont’d)
Insurance Companies
acli.com
aflac.co.jp
aflac.com
aig.com
allstate.com
ambac.com
chubb.com
dfl.dai-ichi-life.co.jp
genre.com
genworth.com
humana.com
libertymutual.com
marsh.com
metlife.com
nationwide.com
newyorklife.com
pacificlife.com
prudential.com
prudential.co.uk
statefarm.com
swissre.com
travelers.com
zurich.com
Federal Regulators/Agencies
chi.frb.org
clev.frb.org
cms.hhs.gov
crs.loc.gov
fanniemae.com
fdic.gov
frb.gov
fsoc.gov
gao.gov
irs.gov
ny.frb.org
treasury.gov
Federal Reserve Bank of Chicago
Federal Reserve Bank of Cleveland
U.S. Department of Health and Human Services
Congressional Research Service (Library of Congress)
Federal National Mortgage Association
Federal Deposit Insurance Corporation
Federal Reserve Bank
Financial Stability Oversight Council
U.S. Government Accountability Office
Internal Revenue Service
Federal Reserve Bank of New York
U.S. Department of the Treasury
International -- Regulators/Agencies/others
ania.it
bafin.de
bankofengland.co.uk
banque-france.fr
bis.org
cba.com.au
eiopa.europa.eu
fsb.co.za
fsco.gov.on.ca
ibc.ca
imf.org
kidi.or.kr
mof.ge
oecd.org
oic.or.th
osfi-bsif.gc.ca
Italian Association of Insurance Companies
BaFin
Bank of England
Banque de France
Bank for International Settlements
Commonwealth Bank/Australia
European Insurance and Occupational Pensions Authority
Financial Services Board (South Africa)
Financial Services Commission of Ontario
Insurance Bureau of Canada
International Monetary Fund
Insurance Supervisor - Korea
Ministry of Finance of Georgia
Organisation for Economic Co-operation and Development
Office of Insurance Commission (Thailand)
Office of the Superintendent of Financial Institutions/Canada
Media/others
ambest.com
actuary.org
bloomberg.net
iii.org
invotex.com
iso.com
limra.com
insurancejournal.com
thomsonreuters.com
soa.org
actuary.org
wsj.com
Banks/Financial Services
blackrock.com
bnymellon.com
edwardjones.com
mortgagebankers.org
jpmorgan.com
morganstanley.com
ubs.com
wellsfargo.com
CIPR Statistics
CIPR Statistics (Cont’d)
Studies/Special Reports
CIPR Studies
• Usage-Based Insurance and Vehicle
Telematics (2015)
• State of the Life Insurance Industry:
Implications of Industry Trends (2013)
• Financing Home Ownership: Origins and
Evolution of Mortgage Securitization, Public
Policy, Financial Innovations and Crises
(2012)
Upcoming CIPR Studies
– U.S. Regulatory Framework– How State
Based Insurance Works (soon to be
released!)
– Captives (2015)
– Life Insurers’ Liabilities and Liquidity Risk
(2016)
– Long-Term Care Issues (2016)
CIPR Telematics Study Findings
• As part of the Study, CIPR performed a
10-question web-based survey of state
departments of insurance (DOI)
• 42 of the 47 jurisdictions participating
were found to have insurers offering
telematics programs in their states
– 8 jurisdictions had > 12 companies
– 15 jurisdictions had 5-11 companies
– 10 jurisdictions had < 5 companies
– 9 jurisdictions do not yet track
CIPR Telematics Study Findings (Cont’d.)
• Most cited reasons for not having a
telematics program
• Smaller jurisdictions noted the lack of interest by their
domiciled insurers
• Driver and data privacy mandates
• Six jurisdictions responded they had passed
or introduced unique legislation intended to
establish a regulatory framework for
telematics-based UBI
• Ten jurisdictions indicated their legal
requirements may potentially hinder insurers’
telematics solutions
CIPR Telematics Study Findings (Cont’d.)
• How do state DOIs monitor and supervise the
ratemaking process for telematics UBI plans?
– Almost all the jurisdictions have a requirement for
filing of rates and rating systems.
– Rates also must be actuarially supported and not
excessive, inadequate or unfairly discriminatory.
– Prior approval is a requirement shared by most
jurisdictions.
– Telematics-based UBI programs generally cannot
use the flex rate filing and must seek prior
approval.
CIPR Telematics Study Findings (Cont’d.)
• State regulator concerns regarding the
marketing/use of telematics UBI products
– 23 jurisdictions answered in the affirmative
– Concerns:
1) claims management;
2) pricing fairness between UBI consumers and
those who wish to not participate;
3) privacy issues; and
4) data ownership and portability.
CIPR Events
• Sponsor forums to discuss current and
emerging issues at NAIC National
Meetings and other venues.
• Four Events a Year
– Three at each NAIC National Meeting
– One Independent Symposium
NAIC Insurance Regulator
Professional Designated Program
• CIPR Events are NAIC Insurance
Regulator Professional Designated
Programs
• For those that have already earned an
NAIC professional designation, CIPR
Events offer the ability to help attendees
achieve a series of learning objectives that
will earn credits toward the maintenance of
that designation.
Upcoming CIPR Symposium
CIPR 2015 Events
• The Risk of Pandemics to the
Insurance Industry (Spring
National Meeting, 2015)
• Insurance Issues from Earthquake
and Fracking (Summer National
Meeting, 2015)
• Fall Event (TBD)
CIPR Past Events
– Navigating Interest Rate Risk in the Life Insurance Industry (2014)
– Implications for Increasing Catastrophe Volatility on Insurers and
Consumers Symposium (2014)
– Commercial Ride-Sharing and Car-Sharing Issues (2014)
– Insuring Cyber Liability Risk (2014)
– The Future of Automobile Insurance: Telematics in the U.S. (2013)
– Exploring Insurers’ Liabilities Summit (2013)
– Health Care Reform - Tools for Oversight and Assistance in the
Marketplace Symposium (2013)
– Insurance for Acts of Terrorism (2013)
– State of the Life Insurance Industry: Implications of Industry Trends
Symposium (2012)
– Financing Home Ownership (2012)
– Flood Insurance Summit (2012)
CIPR Events
CIPR Events (Cont’d)