Market Conduct Data Collection Project Is Ready To Go
By
New Orleans
A data collection project designed to streamline market conduct efforts is "ready to go," according to Sue Stead, an Ohio regulator who helped to develop the pilot project.
Along with a "how to" guide designed to provide regulators with a template for targeting market conduct resources, the project was discussed here during the fall meeting of the National Association of Insurance Commissioners.
Insurers are supportive of the concept of targeting market conduct examinations but still have some concerns, which they expressed. Regulators noted that the data call and analysis that is expected to begin at the end of September with a request to life insurers is a pilot that can be fine-tuned over time.
Chief among insurers concerns is the confidentiality of material provided to pilot states. Insurers are concerned that if confidential information becomes a matter of public record, insurers could become vulnerable to class action lawsuits.
The majority of states participating in the project say they can keep information confidential, but a few states say they are still uncertain about this. The uncertainty, according to interviews, ranges from the need for confirmation from legal staff that information is protected to a department response that market conduct information has always been a matter of record and information provided to the pilot will continue to be public.
Linda Lanam, a vice president with the American Council of Life Insurers, in Washington, said confidentiality is an important issue because confidential information that is made public can be "misconstrued" or requested as part of class action litigation.
Lanam also asked whether data would have to be provided to companies licensed in all 10 pilot states or any of the pilot states.
