v The Framework of Insurance Regulation Rex Bagwell Business
Development Manager Insurance Productivity Services Kurt Jackson
EVP of Sales GhostDraft
Slide 3
v Rex Bagwell Business Development Lead with Salient Commercial
Solutions Worked directly in the insurance industry for 9 years as
an agent, a district manager and now with Salient Commercial
Solutions for the past 6 years Former Director IASA Board and on
several other national committees
Slide 4
v Kurt Jackson Proven and accomplished sales leader with over
20 years of experience in the technology sector EVP of Sales and
Marketing at GhostDraft IASA volunteer and committee member
Slide 5
v Key takeaways Insurance Regulation 101 Protecting the
policyholder The impact of regulations on carriers Limits
flexibility and rate of change How do regulations affect your
ability to sell Do your homework Based on what you are selling
Slide 6
v Agenda The Purpose of Insurance Regulation Key Regulators The
Structure of Insurance Regulation Key Legislation Regulations and
Carrier Concerns Vendor Opportunities Case Studies
Slide 7
v The Purpose of Insurance Regulation Protect the insured
(policyholder): State departments of insurance are accessible and
accountable to the public and are sensitive to the needs and
interests of the policyholder. State regulation works to protect
insured and ensure promises made by insurers are kept.
Slide 8
v Other Insurance Regulation Assurances Availability and Equal
Treatment to All Entitled Persons Fair Competition Insurers
Solvency through Monitoring of Assets Availability of
Insurance
Slide 9
v Key Regulators State Department of Insurance Establish and
oversee state insurance departments Regularly review and revise
state insurance laws Approve regulatory budgets Have impact on
market entry of new carriers Audit insurance companies National
Association of Insurance Commissioners (NAIC) Advisory body and
service provider for state insurance departments to: Pool scarce
resources Discuss issues of common concern Align their oversight of
the industry
Slide 10
v The Structure of Insurance Regulation Company Licensing
Producer Licensing Product Regulation Financial Regulation Market
Regulation Consumer Services
Slide 11
v Regulatory Measures Guaranty Funds Yellow Book Oversight
Statistical Reporting
Slide 12
v State Revenue from Regulation In 2000 states collected more
than $10.4 billion in revenues from insurance sources: $880 million
(8.4%) went to regulate the business of insurance Remaining $9.6
billion went to state general funds for other purposes Effectively
paying a premium tax
Slide 13
v Insurance for Those Who Cant Get Insurance Assigned Risk Pool
FAIR Plans Workers Compensation Funds Windstorm / Hail Pools &
Beach Plans Healthcare *Associations for each
Slide 14
v Key Legislation 1945 McCarrenFerguson Act1996 Health
Insurance Portability and Accountability Act (HIPAA)1999 Financial
Modernization Act (GLB)2002 SarbanesOxley Act (affects publicly
held carriers)2010 - Affordable Healthcare Act
Slide 15
v Regulations and Carrier Concerns Licensing Product Ratings
Financial Stability Market Conduct Exams Insurer Complaints
Relationships with Commissioners Liberty Mutual Insurance TV
Commercial New Car Replacement and Accident Forgiveness
Slide 16
v Implications of Regulations on Carriers Why do companies pull
out of states? Florida Insurance Market Understanding of prospects
markets they serve and the regulatory climate PA Commissioner
interested in holding board accountable Often new regulations are
delayed six months before rollout
Slide 17
v Vendor Opportunities Understand carrier ability to use your
product or service Forms regulation management Address carrier
concerns with regulations Keep up with changing regulations Reduce
risk and increase regulatory accuracy Understand regulations to get
credibility with executives
Slide 18
v Case Studies Producer Lifecycle Management Licensing and
compliance, ensure authorization to sell Customer Communication
Management Less customer complaints through effective
communications Forms Compliance Statistical Reporting Product
Development / Compliance
Slide 19
v Future of Regulations Federal Government moving into
regulations? Regulation Resources: Insurance Journal:
http://www.insurancejournal.com/news/national/2015/01/08/353430.htm
http://www.insurancejournal.com/news/national/2015/01/08/353430.htm
NAIC: http://www.naic.org/documents/consumer_state_reg_brief.pdf
http://www.naic.org/documents/consumer_state_reg_brief.pdf
Slide 20
v Key Takeaways Insurance Regulation 101 Protecting the
policyholder The impact of regulations on carriers Limits
flexibility and rate of change How do regulations affect your
ability to sell Do your homework Based on what you are selling