Iowa Insurance Division Joins NAIC in Educational Initiative in Support of State-Based Insurance Regulation
DES MOINES, IOWA, July 16, 2014—The Iowa Insurance Division is joining in the ‘Protecting the Future’ educational campaign launched today by the National Association of Insurance Commissioners (NAIC). ‘Protecting the Future’ is an educational initiative about the indispensable role state-based insurance regulation plays in strengthening the U.S. economy. This unprecedented education program from the NAIC is being deployed in Washington, DC, Brussels, the capital of the European Union, and in Basel, Switzerland, the seat of the Financial Stability Board (FSB) for the G-20.
This new program highlights the compelling benefits state-based insurance regulation provides to American consumers, employers and taxpayers. It is a critical time for state-regulators as some federal officials and global regulators are seeking unprecedented authority over American insurance markets, including the imposition of bank-centric regulation on insurance companies.
States have effectively regulated America's insurance companies for nearly 150 years. Even during the 2008 financial crisis—as the federal banking and mortgage regulatory regimes collapsed—the state-based insurance regulatory system performed well, protecting policyholders and helping to prevent an even deeper economic downturn.
“The U.S.’s state-based insurance regulation system has an unmatched track record and can best adapt to meet our future economic and financial challenges,” said Senator Ben Nelson, NAIC CEO. “By ensuring soundness, solvency, stability and competition, state-based insurance regulation does more than make insurance markets work—it protects the future for American consumers, employers and the economy as a whole.”
Each year in the United States, businesses, consumers and governments spend over $1.7 trillion on insurance products from more than 6,000 different insurance companies, making up over 34 percent of premium volume worldwide. State regulators, in collaboration through the NAIC, supervise these transactions and ensure that American markets, businesses and consumers are protected.
“Each state can best regulate the unique environment of its insurance business, based on the state-specific conditions within our own borders,” said Iowa Insurance Commissioner Nick Gerhart. “Collectively, we as members of the NAIC are taking this opportunity to explain how that serves the interests of our individual states. That’s especially true in Iowa, a state in which the insurance industry is a key factor in the economy.”
Of the 50 largest insurance markets in the world, 24 are U.S. states overseen by members of the NAIC. By collaborating with the 56 state and territorial insurance commissioners, the NAIC streamlines the process of insurance companies bringing products to market, the sale of products in multiple states and the ability of insurance companies to match the needs of a growing and dynamic consumer marketplace.
Protecting the Future is a sustained, broad-based educational initiative that will include:
- Outreach to key stakeholders in Washington, Brussels and at the FSB
- Events to engage thought leadership on emerging issues
- The use of social media for the distribution of its key messages
“Through this new initiative, we are going to make sure the compelling value proposition of state-based insurance regulation is well understood by policymakers, business leaders, consumer advocates and economic thought-leaders,” said Nelson.
For more information about Protecting the Future and the benefits of state-based insurance regulation, please visit: www.NAIC.org/protectingthefuture.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.
About the Iowa Insurance Division
The Iowa Insurance Division (IID) has general control, supervision and direction over all insurance and securities business transacted in the state, and enforces Iowa’s laws and regulations. The IID investigates consumer complaints and prosecutes companies, agents and brokers engaging in unfair trade practices. Consumers with insurance or securities-related questions or complaints may contact the IID toll free at 877-955-1212 or visit the division on the web at www.iid.iowa.gov.