National Association of Insurance CommissionersNAIC: How We Use Insurer Compliant DataTrish SchoettgerNAIC Sr. Manager

NAIC: How We Use Insurer Compliant DataNAIC History & BackgroundState Insurance Regulatory ObjectivesHow NAIC Supports the States Collecting Data

NAIC: How We Use Insurer Compliant DataWhy NAIC Collects the DataHow States Use the DataKeeping the Data ConfidentialHow You Can Participate in the Process

NAIC History & BackgroundA Tradition of Consumer Protection Formed in 1871Voluntary organization of chief insurance regulatory officials from the 50 states, District of Columbia and five U.S. territoriesCreated to address the need to coordinate regulation of multi state insurers.Assists the states in their primary objective protecting consumers and ensuring the safety and soundness of insurance companies operating in the United States.

State Insurance Regulatory ObjectivesMarket Conduct AnalysisConsumer Assistance & EducationFraud Investigation & EnforcementLicense/ ApproveMarket Regulation/Consumer AffairsFinancial SolvencyGovernmentAffairsCompany Certificate of AuthorityProducer/Agent LicensingRate & Form Product ApprovalFinancial Analysis & ExamsStatutory Accounting & ReportingReceivership Rehab or LiquidationState Accreditation ProgramCoordinate w/Fed RegState Legislators NCSL, NCOILInternational Relations - IAIS

How NAIC Supports the StatesMembership Services Education & TrainingMeeting PlanningFinancial Regulatory ServicesSecurities ValuationMarket Regulatory ServicesLegal/Model LawsResearch/Library ServicesInformation SystemsInsurance Products and ServicesGovernment Relationswww.naic.org

How NAIC Supports the StatesMembership Services Education & TrainingMeeting PlanningFinancial Regulatory ServicesSecurities ValuationMarket Regulatory ServicesLegal/Model LawsResearch/Library ServicesInformation SystemsInsurance Products and ServicesGovernment Relationswww.naic.org

Why NAIC Collects Data1980s Regulator Goal to Improve Financial Solvency Surveillance of all Insurance CompaniesSimplify Compliance for Insurance CompaniesModernize the Financial Reporting process by Collecting Data Electronically Reduce Cost of Regulatory Compliance for CompaniesProvide Regulators in every State, Easy Access to Timely, Accurate Insurance Company Financial Data

Why NAIC Collects DataFDR: Financial Data RepositorySimplify compliance for insurance companiesAdopted one uniform company filing specification standardModernize the financial reporting process NAIC provides the secure network infrastructure for companies to file electronically via the InternetReduce Cost of Regulatory ComplianceCompany can prepare and file their financial statement once, and comply with statutory filing requirements in all 56 jurisdictions

Why NAIC Collects DataFDR: Financial Data RepositoryProvide Regulators in every State, Easy Access to Timely, Accurate Insurance Company Financial DataCollect & Publish in 24 hours company filing of 57,500 data elements loaded and data validated against 16,638 crosschecks within 24 hrs.Worlds Largest Insurance Database 5,000+ company filings aggregated, independently reviewed and supporting calculations added (i.e., RBC, IRIS Ratios) 280 gig data, Immediate, On-line Access for 12,000+ Regulators all State Insurance Departments, regardless of size, staff experience, or budget can begin monitoring insurance company financial solvencyFormats PDF, XML, Excel, HTMLTools Scoring, Profiles, Exam PrepRecent study estimated cost $3 - $13 million, per state, to replicate FDR

Why NAIC Collects DataSimplifyModernizeReduce CostsUniform StandardMake ElectronicSubmit once, comply all statesBuild once, used by all statesStreamline

Collecting DataLicenseApproveSPLD - Producer LicensingUCAA - Company LicensingSERFF Rate & Form Product FilingFDR Financial Data RepositoryAVS, ISIS - Securities ValuationGRID Global Receivership InfoCDS Complaint DatabaseRIRS Regulatory ActionsMAP Market Analysis ProfileFinancialSolvencyMarket RegulationConsumerAffairsCIS Consumer Information SourceOFRS Online Fraud Reporting System

How States Use the DataMake Company Licensing DecisionsMake Producer/Agent Licensing DecisionsMake Rate & Form Approval DecisionsConduct Company Solvency SurveillancePrepare for Market/Financial ExaminationsEvaluate Insurance Company Investment PortfolioTrack Company ReceivershipsTrack Trends in Consumer ComplaintsMonitor Marketplace, Conduct Investigations

Keeping the Data ConfidentialLegalMaintain Confidentiality Agreements with StatesInformation Technology InfrastructureMaintain $6 million data center and networkProvide a Private Frame-Relay Telecommunications Network with the StatesFollow Industry Security Standards and ProceduresMaintain Adequate Firewalls Encrypt Confidential DataConduct System Security Design Reviews

How You Can Participate in the ProcessImplementDatabaseNAICCommitteeOpen MeetingsH CommitteeReviewNAICBudgetNAIC DatabaseNew Database ProcessIdentifies regulatory needPolicy and database developed during open meetingsReviewed by Information Resources Mgmt (H) Cmte to ensure alignment with overall regulatory strategic planProposal vetted thru budget process, (includes public budget hearing)

* Been with the NAIC for 15 years* Been a manager in our IT Division as well as most recently in our Executive Division. * Involved in implementing a variety of the initiatives we plan to talk about today.