The Alliance of American Insurers this week urged the National Association of Insurance Commissioners (NAIC) to show they are serious about modernizing state regulation by reducing the monies they are collecting from insurers and returning some of those fees to the companies they regulate.
During a hearing conducted by the Internal Administration Subcommittee, Alliance Vice President of Legal and Regulatory Affairs Lenore Marema, suggested the NAIC’s budget has too much surplus and some of that should be reduced.
“Some Alliance members think that all they ever get from state regulation is higher bills every year and more headaches,” said Marema. The fact is, the NAIC is currently collecting more from insurers that they can spend. Fees always go up, and the budget never comes down.
“We think, in this time when some in the federal government are questioning the cost and efficiency of state regulation, this would be a good time for the commissioners to show that they are serious about modernizing the regulatory system, and part of that process is reducing the cost of regulation.
“The database fees would be a good starting point,” continued Marema. “Reduce those fees and send a message to your critics that you’re serious about operating in a cost-efficient manner.”
The Alliance said the $50 million plus budget proposed for 2004, combined with a surplus projected at over $40 million is uncalled for and should be trimmed.
“If regulators expect insurers to keep their operating expenses under control, they should certainly be willing to set an example,” added Marema.
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