Nov. 7, 2024
不良研究所官方 Officers鈥 Op-Ed: 鈥淪tates Lead the Way on Better Insurance Markets鈥
In an op-ed for Insurance Journal, National Association of Insurance Commissioners (不良研究所官方) President and Connecticut Insurance Commissioner Andrew N. Mais, President-Elect and North Dakota Insurance Commissioner Jon Godfread, Vice President and Virginia Insurance Commissioner Scott A. White, and Secretary-Treasurer and Rhode Island Department of Business Regulation Director Elizabeth Kelleher Dwyer discussed state insurance regulators鈥 work to safeguard consumers and market solvency as an overall robust U.S. property insurance market faces several challenges.
The 不良研究所官方 Officers noted:
The effectiveness of the U.S. state-based insurance regulatory framework in safeguarding consumers and ensuring market solvency is rooted in states鈥 ability both to act collectively when needed on national issues and to adapt and innovate to unique local circumstances and market conditions. America鈥檚 56 insurance commissioners and their teams are working to ensure that climate-related risks are appropriately addressed and also to strengthen the insurance market and the economy at large. Nearly 11,000 insurance regulators are supporting efforts to both expand coverage and lower risk, making coverage more attainable for consumers and markets more stable.
State insurance regulators鈥 efforts include educational outreach and emphasizing disaster preparedness, including pre-storm mitigation:
Informed consumers make better decisions. That鈥檚 why helping homeowners understand their insurance policies and coverage is so important and a core component of what insurance regulators do every day. These educational efforts focus on informing the public about key insurance principles, terms and consumer rights. Commissioners are also taking steps to help consumers reduce losses and speed up recovery from natural disasters to keep insurance accessible all around the country.
Policyholders can also take action before they have a loss. In fact, there are creative state-based pre-disaster mitigation efforts that are geographically specific that provide opportunities for consumers to improve their property鈥檚 resilience to extreme weather and help mitigate their risk 鈥 and qualify for insurance premium discounts.
Other work focuses on ensuring fair rates, a competitive market, prompt handling of claims, and solvent insurers who can keep their promises to consumers:
When disputes arise, state insurance departments offer mediation and investigation services, advocating for fairness and accountability and rooting out fraud. By regulating with a forward-looking approach, they encourage healthy competition among insurers, which can lead to more creative, efficient and consumer-friendly insurance solutions. This competitive landscape is what ultimately keeps premiums reasonable and drives insurers to improve their offerings.
As the industry evolves and innovates, so, too, do state insurance regulators:
Insurers are also no longer relying solely on historical loss data to predict future losses 鈥 many now leverage sophisticated catastrophe models that factor in severe weather, the density and construction quality of housing, and other economic variables.
To keep pace, regulators have created the Catastrophe Modeling Center of Excellence within the National Association of Insurance Commissioners鈥 Center for Insurance Policy and Research to evaluate catastrophe model usage. Risk assessment is a foundational tool to identify potential economic and insurance market disruption and can be applied to support policy and legislative action to reduce the risk.
The Officers conclude:
Homeownership is not just a primary asset for many Americans today but also a way to create wealth that can be passed on to the next generation. This source of wealth is caught in the crossfires of rising inflation and the increasing frequency and severity of natural disasters.
Insurance pricing and availability exists at the intersection of these escalating forces, and state regulators work every day to ensure that despite these pressures, consumers are treated fairly, and U.S. insurers remain strong, solvent and competitive.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (不良研究所官方) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the 不良研究所官方, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. 不良研究所官方 staff supports these efforts and represents the collective views of state regulators domestically and internationally.