The National Association of Insurance Commissioners has released its proposed budget for 2006, which calls for projected revenue of $59.3 million, a .18 percent increase over 2005 budget levels. Projected expenses of $58.3 million represent a 3.63 percent increase over the current spending plan.
“During the budget process we maintained our focus on the modernization of state insurance regulation in a manner that benefits both insurance consumers and the industry,” said Diane Koken, NAIC President and Chair of the NAIC Internal Administration Subcommittee. “The NAIC membership identified priority initiatives that continue our regulatory modernization efforts and this spending plan directly supports those initiatives.”
A public hearing to discuss the financial plan, via a teleconference, is scheduled for Nov. 3, 2005.
The significant revenue changes from 2005 to 2006 include:
* Database Fees are budgeted to decrease $1,369,974 (5.4%) from the 2005 budget and $131,279 (0.5%) from the 2005 projection. A portion of the decrease in 2006, or $790,850 is resulting from less than anticipated 2004 premium growth and consolidation activity within the industry during 2004. The remaining %579.124 decrease relates to an overall reduction in the database filing fee schedule for 2006.
* Publications and Subscriptions will increase $240,549 (1.69%) from the 2005 budget and increase 1.2% from the 2005 projection.
* Services revenue is budgeted to increase by $319,426 (3.4%).
* National Meeting Registrations are $110,899 (5.6%) higher than the 2005 budget and $271,136 (14.9%) higher than 2005 projected levels.
* Investment Income is anticipated to increase by $227,232 (28.7%) from 2005 budgeted levels.
The significant expense changes from 2005 to 2006 include:
* Salaries are budgeted to increase $1,333,504 (5.1%) from the 2005 budget and $2,198,128 (8.7%) from the 2005 projection. This increase represents an average annual increase of 3.5% on base salaries offset by an increase in turnover, and FTE additions made in 2005 and proposed for 2006.
* Employee Benefits are budgeted to increase $175,905 (3.3%) from the 2005 budget, and 0.1% from the 2005 projection.
* Professional Services are budgeted to decrease by $856,941 (24.2%) from the 2005 budget and 30.4% from the 2005 projection, which results from a significant decrease in the professional consulting services requested within the budget for 2006 projects.
* Travel is budgeted to increase by $265,044 (16.0%) from 2005 budgeted levels and $393,911 (21.8%) from 2005 projected levels.
* Occupancy is budgeted to increase $649,960 (13.7%) in 2006, due to the Executive Headquarters expansion onto the fourth floor of their 2301 McGee office space.
* Depreciation will increase by $293,588 (8.0%) from the 2005 budget and $183,755 (4.9%) from the 2005 projection.
“The NAIC budget process is designed to clearly explain and outline all of our activities and initiatives,” said Catherine J. Weatherford, NAIC Executive Vice President and CEO. “Our budget and financial reporting processes are fully transparent. This spending plan reflects an increase to the services that directly support modernization goals of the membership, while improving efficiency through continued use of technology.”
For questions about the proposed budget, or for a copy of the budget package, please call Brady Kelley at the NAIC at (816) 783-8010. The NAIC Web site at http://www.naic.org/index_about.htm also provides summary information and details of the 2005 budget proposal.
About the NAIC
Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The association’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, it is the oldest association of state officials. For more information, visit NAIC on the Web at: www.naic.org/pressroom .
You are currently subscribed to the “NAIC New Release” electronic service. For information regarding this service, please contact the NAIC Communications Department, 2301 McGee Street, Kansas City, MO 64108, 816.783.8003.
To unsubscribe from the “NAIC News Release” electronic service, send a blank e-mail to the News Release service. Or, click here to unsubscribe from the NAIC Web site.
To unsubscribe from all NAIC Electronic Services, send a blank e-mail to NAIC Opt Out services.
Topics Legislation
Was this article valuable?
Here are more articles you may enjoy.
Why New York’s Attorney General Objects to Trump’s Bond Insurer 
Investment Funds File New Suits Over Lighthouse Insurance Collapse in 2022 
Former Congressman Charged After Collision with State Trooper in Florida 
California Sees Two More Property Insurers Withdraw From Market 
