National Association of Insurance Commissioners (NAIC) CEO and US Senator Bill Nelson hailed the resilience of the US insurance sector in the face of escalating natural disasters at a recent panel discussion.
The panel was part of a forum for insurance executives focused on property and casualty insurance issues. The panel explained how regulators respond to natural disasters such as hurricanes, tornados and fire, as well as how they coordinate regionally and nationally as part of the state-based national insurance regulatory framework.
They also discussed a number of issues that regulators are facing in other insurance sectors and key initiatives for the association in 2014, including their coordination with global insurance supervisors.
Senator Nelson commented: “Current climate conditions have resulted in more frequent natural disasters, and the costs incurred by insurers is ultimately paid by consumers. But beyond the numbers lies a different story—one of resilience, recovery and rebuilding that is made possible by state insurance departments and NAIC staff partnering with industry and local government.”
The Terrorism Risk Insurance Act (TRIA), which expires at the end of 2014, was also discussed. The NAIC is actively engaged with Congress on the reauthorisation of TRIA, in the hope that a federal partnership with private insurance markets will provide security by minimising market disruptions and ensuring the widespread availability and affordability of property and casualty insurance for terrorism risks.
Nelson’s remarks were followed by a regulator dialogue involving NAIC members including Missouri insurance director John Huff, Oklahoma insurance commissioner John Doak, New Mexico insurance superintendent John Franchini and Texas insurance commissioner Julia Rathgeber.
