NAII PUSHES FOR MODERNIZATION

The National Association of Independent Insurers (NAII) is urging the National Conference of State Legislatures (NCSL) to support a model bill for the regulatory modernization of personal lines that provides a competitive use and file system with appropriate consumer safeguards. The NCOIL and ALEC model law relies on competition within the marketplace to determine rates with its use and file rating structure, but it also provides for regulatory intervention and consumer protections if a market is considered not to be competitive. An NAII survey of regulatory best practices conducted earlier this year concluded that in many states there is a need for a public policy change that would provide a more competitive environment, with regulatory attention being more focused on solvency and market conduct issues rather than micro-management of individual insurer rates and forms. The survey added that the reality is that insurance markets have evolved at a much faster pace than insurance regulation. There is a growing consensus regarding the need to address modernization of rate and form regulation, and the NAII is hoping that the Task Force will see the value of personal lines modernization for consumers resulting in marketplace stability, enhanced availability and more accurate cost-based pricing.