INDIANAPOLIS (Feb. 8, 2006)—The National Association of Mutual Insurance Companies (NAMIC) questions the trend by the National Association of Insurance Commissioner (NAIC) create new insurance industry databases.
“The proliferation of NAIC databases undertaken without regard to cost, duplication, or confidentiality is a serious issue for insurers,” wrote NAMIC Regulatory Affairs Counsel Marsha Harrison in NAMIC’s just released Issue Brief, “NAIC Databases Raise Concerns for Insurers.”
The NAIC has cooperated with the industry since the 1980’s in the development and maintenance of insurer financial information in the Financial Data Repository and, later, producer licensing information in the National Insurance Producer Registry. However, the NAIC’s position now is to take a more authoritative role over both current and newly developed projects, according to Harrison.
The Issue Brief highlights significant concerns about proposals for new centralized databases to be housed at the NAIC:
The NAIC maintains that it will create greater efficiencies and avoid data duplication among states. NAMIC argues that the NAIC’s proposed involvement will have the opposite effect: there will be increased cost, fewer efficiencies, legal compliance issues, added regulations, and little if any benefit to insurers. The Issue Brief looks at four specific database projects currently underway:
NAMIC will continue to work with the industry to scrutinize and question any current or new proposals involving database issues and will advocate against the creation of additional databases.
NAMIC Issue Briefs encompass a variety of diverse subject matter relevant to the insurance industry and NAMIC member companies. Issue Briefs provide insight into significant topical issues. All current Issue Briefs can be accessed at NAMIC’s website, NAMIC Online, www.namic.org .
The Issue Brief, “NAIC Databases Raise Concerns for Insurers,” can be downloaded at NAMIC Online.
For further information, contact
Rick Nelson, APR, CAE
(317) 875-5250 Tel
(317) 879-8408 Fax
Posted: Wednesday, February 08, 2006 12:00:00 AM. Modified: Thursday, February 09, 2006 10:36:03 AM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.