NAIC improves tracking tools for insurance regulators

What do you want to know

  • Regulators have been watching carefully to assess the effects of the COVID-19 pandemic.
  • They use artificial intelligence tools to identify high-risk insurers.
  • They have also added market conduct tracking tools.

The National Association of Insurance Commissioners says it is developing tools that will help member regulators better monitor insurers.

The Kansas City, Mo.-based group of regulators talks about the new tools in its 2021 annual report.

The band turned 150 in 2021, but the COVID-19 pandemic left them no time to celebrate.

Instead, regulators and NAIC staffers rushed to complete projects that could help regulators and insurers deal with pandemic-related upheaval.

A team continued its efforts to identify insurers who may have difficulty obtaining the cash they need to pay claims.

This team ended up identifying 23 candidates for the liquidity risk stress test. These insurers are filing stress results for 2020, according to NAIC officials.

Another NAIC team has developed an artificial intelligence-based strategy to identify insurers most at risk of financial trouble. Regulators are using the results of the AI ​​Risk Analytics Project to improve the NAIC life rating system, and the changes to the rating system should help improve the monitoring of the solvency of life insurers, according to the ‘association.

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