PID meets NAIC's standards of consistent solvency regulation, benefiting consumers through effective financial regulation of PA insurers
Harrisburg, PA – The Pennsylvania Insurance Department (PID) announced today that the National Association of Insurance Commissioners (NAIC) voted last week to reaccredit PID for a full five years at the NAIC's 2024 Summer National Meeting. The Department's ongoing accreditation aligns with the Shapiro Administration's efforts to protect and better serve Pennsylvanians by fostering a financially sound insurance market in the Commonwealth.
Accreditation serves to create a uniform regulatory environment while also protecting Pennsylvania consumers. This accreditation demonstrates that PID meets the national standards for financial regulation and appropriately oversees its domestic insurance companies to make sure they can pay claims when consumers need it most.
The Accreditation process involves an extensive and independent review every five years to ensure that state insurance departments meet financial solvency regulatory standards.
“Insurance is the only financial service industry that is primarily regulated at the state level. The Accreditation Program promotes consistency among states ensuring effective and non-redundant regulation of insurers that operate throughout the country," said Pennsylvania Insurance Commissioner Michael Humphreys. “We take these standards seriously because they reflect our dedication to serve Pennsylvanians by making certain that Insurers are financially able to pay claims. I applaud the PID team for all their hard work and commitment in securing PID's five-year accreditation."
To become accredited, PID had to undergo a comprehensive and in-depth on-site accreditation review by a team of independent consultants, who evaluated the Department's capabilities in the following areas:
- Financial solvency laws and regulations;
- Effectiveness of financial analysis and examination execution;
- Organizational and personnel practices; and
- Company Licensing review standards.
An accreditation review must be performed at least once every five years – with interim annual reviews – to remain accredited. The successful reaccreditation enables other states to rely on the work of the Pennsylvania Insurance Department for efficient integrated state- based insurance solvency regulation.
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