Insurers operating in a competitive market can best serve consumers when they are able to innovate and respond to changing market conditions by introducing new and updated products without having to overcome unnecessary regulatory hurdles. Rate regulation in competitive markets is among the most significant and persistent of such obstacles by drastically slowing the process through which new products are approved for sale.
Many states have taken steps to modernize their regulation of commercial lines by enacting statutes exempting transactions involving larger and more sophisticated commercial entities from rate and form filing requirements. There have been significant gains in the approval process in other areas. The development of the System for Electronic Rate and Form Filing, or SERFF by a joint industry/regulator coalition has greatly enhanced communication between insurers and regulators to facilitate review and approval of new and innovative products.
NAMIC is strongly supportive of initiatives that enable insurers to compete more effectively by introducing new and updated products to the market in an efficient manner.