Insurance industry associations engaged in their annual rite of passage this month, criticizing on many fronts the proposed National Association of Insurance Commissioners (NAIC) budget for the coming year, especially targeting the association’s growing accumulated surplus which one organization predicted could break the $100 million mark in just four more years, in 2016.
Total unrestricted net assets are projected to be $81.5 million at the end of 2012. The 2013 proposed budget would increase this amount to $83.3 million by year-end 2013, which would amount to a 72 percent increase in just five years, it was noted. Total unrestricted net assets were $48.4 million at the end of 2008; $59.1 million at the end of 2009.
“This is a matter of great concern to NAMIC since, as we consider the budget, we are mindful that the costs reflected therein are borne by insurers initially and by the insurance-buying public ultimately.”
The Property Casualty Insurers Association of America (PCI) said that the NAIC should also consider whether there is a longer-term plan for assessing revenue and expense issues because it remains concerned about the long-term growth of the NAIC’s budget asked again for a full discussion.