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State Ahead Implementation

Last Updated 7/13/2018

Issue: The NAIC Strategic Plan: State Ahead was drafted and vetted during 2017 and has been adopted by the NAIC membership in 2018. It is a three-year plan covering 2018-2020. State Ahead provides a blue print for the NAIC's future. It was developed to provide a comprehensive strategic plan to guide the efforts of the organization.

Status: State Ahead is organized around three themes. Each theme is supported by one or more goals providing details on how the theme will be addressed to execute the plan.

THEME I: Safe, Solvent and Stable Markets

Goal 1: Provide state insurance regulators with data, training and tools required to support a collaborative regulatory environment that fosters stable financial markets and reliable and affordable insurance products.

The main objectives being considered to achieve this goal are:

  • Optimize data and information for regulator-focused analytics
  • Evaluate regulatory opportunities arising from macro-prudential surveillance

The first objective calls for modernizing the way data is collected and organized to make it more consumable for state insurance regulators, NAIC staff, the industry and consumers. This will empower users with self-service business intelligence tools to give greater insight into insurer financial condition and market practices. The second objective is to analyze how the insurance sector is impacted by broader financial markets, common risk exposures and the economy. Together these objectives should lead to better organization and analytical reporting on the financial health in the insurance industry.

Some of the work product expected includes:

  • Creation of an enterprise data strategy and analytics data warehouse;
  • Exploration of the use of advanced cloud computing capabilities
  • Application of business intelligence tools to NAIC and external data to improve macro prudential surveillance capabilities;
  • Enhanced support for the NAIC Financial Stability (EX) Task Force
  • Exploration of advanced tools (such as artificial intelligence and predictive analytics)

THEME II: Consumer Protection and Education

Goal 2: Ensure that consumer protection keeps pace with changes in the marketplace and consumers have information and education needed for informed decision making.

The main objectives being considered to achieve this goal are:

  • Optimize use of market data and regulatory processes to enhance consumer protections
  • Provide effective and accessible consumer education and financial literacy tools
  • Position NAIC and its members as thought leaders in insurance regulatory innovation

NAIC and state insurance departments have begun collecting market data from insurers through filings of the NAIC's Market Conduct Annual Statement (MCAS). The first objective calls on the NAIC to leverage NAIC technology to collect and store more market data. This includes developing analytical tools for the benefit of state insurance departments. The second objective involves becoming more engaged in the areas of InsurTech and RegTech. The goal is to understand how consumers are impacted by new products and services.

Some of the work product expected includes:

  • Rebuilding the NAIC's MCAS and associated applications as a cloud-based solution
  • Implementation of business intelligence tools with self-service capabilities
  • Creation of an enterprise market data strategy and analytics data warehouse
  • Developing the Insure U website and update tools for state insurance departments
  • Utilizing CIPR to enhance focus on insurance regulatory innovation
  • Creating a Cybersecurity Insurance Institute

THEME III: Superior Member Services and Resources

Goal 3: Provide optimal services to support state insurance departments and equip them with the necessary talent and resources.
Goal 4: Optimize the efficiency and effectiveness of the NAIC structure.

The main objectives being considered to achieve these goals are:

  • Expand ongoing training for regulators at all levels of state insurance departments
  • Ensure NAIC provides state insurance regulators with secure, reliable and flexible technical services
  • Focus on better management of regulatory issues introduced in committees and task forces, including setting expectations, defining deliverables and establishing time deadlines

These three objectives require the NAIC to work closely with state insurance departments to better understand their needs. Additionally, to improve the security, flexibility and availability of technology-related services, the NAIC will focus on four things — cybersecurity, improving the customer experience, platform transformation, and talent development and management.
                                   
Some of the work product expected includes:

  • Outreach to each member to identify training needs
  • Continuing to prioritize cybersecurity and build out its framework
  • Improving the user experience of NAIC technology services
  • Transforming platform and development practices
  • Addressing member and NAIC talent and resource needs