Michael Consedine, the new CEO of the National Association of Insurance Commissioners (NAIC), speaks at the AAIS Main Event about his priorities; technology, innovation and disruption; the IAIS and international capital standards; and Trump Administration goals to create a more competitive healthcare market through cross-border insurance sales.
Mr. Consedine says some of his propitiates encompass innovation and technology, as well as the new dynamic in Washington, with the new administration’s focus on Dodd-Frank and the Healthcare System. As the new CEO, he is also making sure that the NAIC is being responsive to its membership.
The NAIC is taking a “thoughtful approach” to the industry “disruptors”, embracing innovation that is pro-consumer, while monitoring the potential negative effect of Big Data and technologies. Mr. Consedine notes that the NAIC is not having an immediate over-reaction pushing back against technology. The NAIC is hosting forums to help better understand the effects of emerging innovations, so the regulator can be supportive of a fair and level playing field.
The NAIS continues to be engaged with the International Association of Insurance Supervisors (IAIS) regarding capital standards and Comm Frame. Mr. Consedine says the NAIC continues to support approaching international standards in a “principled manner” instead of a prescriptive, one-size-fits-all methodology. He expressed concern that a “Solvency II-based standard” might be great for Europe, but not great for the U.S. Mr. Consedine noted that he is pleased with more recent developments at the IAIS, and “Team USA and the Federal Reserve.
The NAIC supports the Trump Administration’s objective to have a more competitive healthcare market. Mr. Consedine says the NAIC does not believe that opening up cross-border sales of insurance is the best way to achieve that, and he worries consumer protections would suffer as a result.