Revised NAIC Price Optimization White Paper Comments Due September 8, 2015

Aug 16, 2015

Insurance Regulation Lawyer

Above:  Colodny Fass’ Donovan Brown Notes Comment Period Runs Through September 8 on this Weekend’s Revisions to NAIC Price Optimization White Paper Draft 


The National Association of Insurance Commissioners’ (“NAIC’s”) Casualty Actuarial and Statistical Task Force met at the 2015 Summer National Meeting yesterday, August 15, 2015, during which regulators discussed substantive changes to the draft Price Optimization White Paper (“White Paper”).  Members of the Colodny Fass NAIC Insurance Regulatory Team attended and monitored the proceedings on behalf of interested clients. 

White paper revisions will be incorporated into the current version of the document and offered for a 30-day comment period ending September 8, 2015.  A markup of the White Paper is available on Page 79 of yesterday’s meeting materials, which can be accessed by clicking here.

The NAIC undertook the study of the availability and affordability of auto insurance after the 2013 Federal Insurance Office Regulatory Modernization Report identified insurer data mining activities as a problem manifested by insurance price optimization practices.  The issue of price optimization was initially heard by the NAIC’s Auto Insurance Study Group during December 2013.  After comprehensive evaluation, it was decided that, because the topic extends beyond auto insurance and requires a great deal of actuarial expertise, further research on it, as well as its regulatory implications, would best be handled by the Casualty Actuarial and Statistical Task Force–part of the NAIC’s Property and Casualty Committee.  The Task Force will ultimately respond to the Auto Insurance Study Group in the form of the White Paper.

Recently, the Federal Advisory Committee on Insurance Affordability and Accessibility of Insurance Subcommittee also recommended that regulators scrutinize outcomes of insurance rating practices to see if they are having a disparate impact.

The NAIC Price Optimization White Paper draft into which yesterday’s Casualty Actuarial and Statistical Task Force changes will be incorporated is attached for review.  Please note that this draft does NOT reflect the changes.  Colodny Fass will provide the new draft once it is made public.



Should you have any questions or comments, please contact G. Donovan Brown at Colodny Fass (+1 850 545 8864 or



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