NAIC announces 2025 legislative, regulatory priorities

In an increasingly complex and rapidly-changing regulatory environment, The National Association of Insurance Commissioners (NAIC) plans to focus on strengthening the national system of state-based insurance regulation in 2025.

The NAIC announced its legislative and regulatory priorities for the year on March 21, with a particular focus on fostering innovation, competition and security in the marketplace while also encouraging greater cooperation between the federal and state governments.

NAIC priorities for 2025 include the following:

• Shuttering the U.S. Treasury’s Federal Insurance Office (FIO) - NAIC Members advocate for the FIO's removal, as they feel it conflicts with state regulators, complicates international engagement, duplicates data collection efforts, and obscures the distinction between the Treasury and independent regulators. The NAIC would prefer to see state coordination with federal regulators and independence for state systems rather than a centralized, top-down approach.
• Ensuring natural disaster resilience: The NAIC feels Congress must work with state insurance regulators to enhance community resilience against natural disasters. By providing targeted funding, tax incentives, and support for state mitigation programs, Congress can help lessen losses and insurance claims, benefiting property and housing markets.
• Promoting flexibility for state markets: NAIC members urge Congress to maintain state flexibilities related to health insurance markets, support state-based policies in areas like exchanges and health benefits, and increase state authority over various health plans.
• Pursuing consistent funding for crucial programs: To improve health outcomes, the NAIC urges Congress to extend enhanced Affordable Care Act subsidies before they expire. NAIC members also feel the administration should ensure timely funding for state grants and waivers to support and expand coverage.
• Producing guidance on key issues: Lastly, the NAIC feels the federal government should provide “long-overdue” guidance and necessary clarifications to states on important federal regulations. These regulations include Section 1557 nondiscrimination rules, copay accumulator rules, and Mental Health Parity grants.