- Division of Insurance
The National Association of Insurance Commissioners (NAIC) voted to reaccredit the Massachusetts Division of Insurance (Division or DOI) at the NAIC’s 2024 Fall National Meeting this past weekend.
In the U.S., insurance is regulated primarily by the individual states, rather than by the federal government. The NAIC, founded in 1871, is the standard-setting organization that assists in coordinating the regulation of multistate insurers. The NAIC Accreditation Program establishes that insurance regulators continue to meet the national standards for effective financial regulation and solvency oversight, and appropriately oversee domestic insurance companies.
NAIC accreditation is necessary to ensure a uniform regulatory environment while also protecting the insurance-buying public in Massachusetts. To achieve re-accreditation, the Division had to undergo a comprehensive 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;
- Financial analysis and examination capabilities;
- Organizational and personnel practices; and
- Company licensing, redomestications, and change of control of domestic insurers review standards.
An accreditation review must be performed at least once every five years with interim annual reviews. If necessary, key areas for improvement may be provided to the state and interim follow up may be required on those areas.
Learn more about the NAIC’s Financial Regulation Standards and Accreditation program.
