In the AAIS Pulse session Commissioner’s Corner: Catching Up with National & State Insurance Regulators, host Lori Dreaver Munn, Director of Compliance and Government Relations at AAIS spoke with multiple leading regulators for their insights on trending regulatory topics including Chlora Lindley-Myers, Director of the Missouri Department of Commerce and Insurance and NAIC President. In this interview, Lindley-Myers discussed her approach going into this year’s presidency, initiatives currently underway for 2023, progress in the area of Diversity, Equity, and Inclusion (DEI) in the insurance industry, and more.
A C.A.L.M. Approach in 2023
As president of the NAIC, Lindley-Myers is taking a C.A.L.M. approach. “It represents an opportunity for us to come together and to work collaboratively (C) and meet our challenges [as well as] communicate with one another,” she explained. “I want us to be attentive (A) to the many issues before us and the people we serve and to be accountable for our decisions and actions. I want us to look deeply at the products that we are providing to the clientele and the innovations we should consider.” Lindley-Myers wants the NAIC to always be learning (L) so that they can apply knowledge along with the methodologies (M) they’re using (i.e., artificial intelligence [AI] and other new innovations) to look at things as both regulators and also as companies.
NAIC’s Strategic Priorities
Lindley-Myers explains that the NAIC’s strategic priorities for 2023 are designed to benefit the consumers as well as the industry. “Consumer protection is always at the top of our responsibilities, and you’ll see it in every strategic priority. This year the strategic priorities include member connectivity,” stated Lindley-Myers. She cited the new NAIC Connect app as an example, which provides more member access and interaction. “Regulators always need to be looking ahead to ensure that we can work to protect those consumers and anticipate both the rewards and the pitfalls for consumers when it comes to insurance products.”
The NAIC will also be looking more into data and analytics, including areas like AI. While these technologies are an advancement for the industry, Lindley-Myers urges regulators "to be very cautious [about the fact] that we are allowing or introducing automation that may unintentionally create or perpetrate biases."
Other priorities include consumer protection, consumer education, consumer outreach, and advocacy. “I believe this is one of our more important areas of responsibility,” said Lindley-Myers. “Our consumer needs our help to become better informed, better educated, and more prepared to make better decisions.”
Finally, the NAIC will be prioritizing governance and management as well as organizational operations. “These...are extremely important for the NAIC as they are the driving forces that allow our organization to work towards all the other goals,” said Lindley-Myers. “As a body, we come from many different political perspectives and geographies. Our states have different issues and different needs. The committee system and the NAIC operations models help us work through these differences to make decisions for the protection of our consumers and for the integrity of our marketplace.”
DEI Progress in the Insurance Industry
Lindley-Myers was recently recognized as a DEI trailblazer after being the first woman of color elected as NAIC President in over 150 years. Lindley-Myers feels there has been some effort in the area of DEI, but there is a lot more work to be done. When it comes to racial issues, Lindley-Myers believes it is the status quo that is the biggest obstacle being faced. “It is the danger of doing nothing,” she said. “Addressing DEI is not just a moral issue, but an economic imperative. My entire lifetime of experiences working in many capacities in many states has led me to a place where I can apply what I've learned in those various areas to help move us forward.”
Even though discrimination based on risk is the essence of insurance, people in the industry still need to be mindful of how they use data in their business. “We could potentially amplify problems that often have racism at [its] core, like crime, poverty, and poor health,” warned Lindley-Myers. “Many might see racism as a societal issue, separate from the issue that we regulate. I would respond [that] we live in society, so it is our issue.” Lindley-Myers is hopeful about the work being done to address race and inclusion, but there will always be people who think things are fine just the way they are. “If changes are going to occur, it's because we’re allowing it to change.”
To view the entire interview with Commissioner Chlora Lindley-Myers, click on the video above.
