Update From NAIC
Updated: Oct 4, 2022
Every few years I attend the NAIC (National Association of Insurance Commissioners) Conference in Kansas City as the association provides industry updates to regulators from across the United States. Seminars include updates on modeling and processes for licensing, pricing, human resources and market conduct reviews.
As agents, MGAs and carriers we all have a responsibility to our regulators as they ensure the insurance industry meets high standards in service to Texas consumers.
I wanted to share some of the information with you from the conference as it may relate to you and the management of your agency.
As we all begin the process of planning for 2023, the conference looked at current economic conditions related to the P&C industry and an outlook to 2023. The conference was aware of the increases in P&C loss ratios during the past two quarters and acknowledged the increase in submissions for rate throughout the past several months. Further NAIC acknowledged more rate may be required in the P&C category throughout the remainder of 2022. Most economists at NAIC are predicting recession in 2023 over a period of months. Middle market auto insurance has shown itself rather recession proof. This is good news for independent agents as consumers continue to shop for potential savings.
Regulators acknowledged there is still a need to assist in the creation of a swifter and easier path for insurance licensing. As agents trying to hire new people into the industry, you are well aware of the process and pain of trying to get your new employees licensed and up to speed. Further, NAIC addressed the need for easier ways for licensing outside of not just general lines appointments but also within claims adjusting.
Another lead topic for NAIC this past year was a focus on diversity equity and inclusion (DE&I). Regulators want to ensure an opportunity for underserved communities as the industry continues to grow. Alinsco and our agents are very focused on serving minority communities and providing growth opportunities.
I now have a weekly block of time for agent video meetings. If I can offer any updates or assist you with ideas in your agency please use the sign up at the top of the page. I continue to seek more ways to connect with more agents as frequently as possible.
This week is the start of the Property and Casualty Insurers Association convention in Dallas and I will provide updates from there as I find them pertinent for you. Have a great week.