Carson City, NV - July 28, 2014
The Nevada Division of Insurance, in partnership with the National
Association of Insurance Commissioners (NAIC), launched ‘Protecting the
Future,’ an educational initiative about the indispensable role state-based
insurance regulation plays in strengthening the U.S. economy this month. 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.
“As an active and accredited member of the NAIC, Nevada recognizes
and values the role of state-based insurance regulation in America,” said
Insurance Commissioner Scott Kipper. “The Nevada Division of Insurance
regulates Nevada’s $11.5 billion insurance industry which generates $240
million in tax revenue for the state. There 2,173 admitted carriers in Nevada,
200 of which are headquartered here. State-based insurance regulation ensures
that this important industry is regulated by Nevadans for Nevadans.”
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
“Our proven system continues to effectively evolve as the states
respond to emerging issues, new products, innovations and changes in the
financial services landscape,” said NAIC President and North Dakota Insurance
Commissioner Adam Hamm. “Federal officials need to understand that what works
in one state may not work in another. State insurance regulation works because
it’s specific to the industry’s unique risks and able to reflect state-specific
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
“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 Nevada
Division of Insurance
State of Nevada Division of Insurance is a division of the Nevada Department of
Business and Industry. It is the state agency that protects the rights of
Nevada consumers and regulates Nevada’s $11.5 billion insurance industry. It
has offices in Carson City and Las Vegas. In 2013, the
Division investigated more than 2,300 consumer complaints and recovered nearly
$4.4 million on behalf of consumers. For more information about the Division of
Insurance, visit DOI.NV.GOV.
About the NAIC
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,