What is the National Association of Insurance Commissioners (NAIC)?
The National Association of Insurance Commissioners (NAIC) is a regulatory support organization that is governed by chief insurance regulators from all 50 states, as well as the District of Columbia and several U.S. territories.
The NAIC assists state insurance regulators, enabling them to put standards and best practices in place. In addition, regulators use the NAIC to perform peer reviews and coordinate regulatory oversight efforts. To further assist in supporting state regulators by facilitating their efforts, the NAIC acts as a representative agency, representing the regulators’ collective views to domestic and international audiences.
- The NAIC assists state insurance regulators, enabling them to put standards and best practices in place.
- The NAIC works in conjunction with insurance regulators for each state, assisting them in the protection of competitive markets and public interests; the ultimate purpose of the NAIC, through these actions, is to promote fairness and equitable treatment of all insurance consumers.
- The NAIC is broken up into a number of specifically named groups that facilitate its various missions.
The NAIC’s Mission and How It Functions
The primary mission of the NAIC is to help establish a framework that enables insurance regulators to facilitate the best insurance practices. It performs its duties through a variety of different committees and groups. The association works – through its members – to help create laws that put national standards in place, with the end goal of making insurance consumption easier and better for users.
To be more specific, the NAIC works in conjunction with insurance regulators for each state, assisting them in the protection of competitive markets and public interests. The ultimate purpose of the NAIC, through these actions, is to promote fairness and equitable treatment of all insurance consumers.
Groups within the National Association of Insurance Commissioners
According to the NAIC’s website, there are a number of specifically named groups (or divisions) within the NAIC. They include the:
- Executive Division – Includes the finance department and individuals responsible for insurance business compliance
- Human Resources and Internal Services Department – Responsible for the internal functionality of the NAIC
- Information Technology Group (ITG) – Responsible for delivering IT products that further assist the NAIC in assisting regulators as they institute state-based insurance regulatory systems
One group of particular importance within the NAIC is the Financial Regulatory Services (FRS) group. The individuals within the division offer technical expertise in relation to accounting, solvency regulation, reinsurance, and international insurance and investment issues.
The NAIC is a vital organization because it offers insurance regulators the support and the tools they need. It also makes it possible to formulate a nationally accepted framework through which all insurance providers can operate, giving consumers the best service possible.
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