Massachusetts Was One of Four Departments of Insurance Re-Accredited During the 2024 Fall Meeting
The Massachusetts Division of Insurance (DOI) has been reaccredited by the National Association of Insurance Commissioners (NAIC) following an assessment at the NAIC’s 2024 Fall National Meeting. This reaccreditation confirms the Division’s adherence to national standards crucial for the effective regulation and solvency oversight of insurers within the state.
State-level regulation is central to the U.S. insurance market, with the NAIC playing a key role in harmonizing oversight across states. The NAIC Accreditation Program evaluates state insurance regulators like the DOI on several fronts, including:
- Enforcement of financial solvency laws and regulations;
- Financial analysis and examination capabilities;
- Organizational and personnel practices;
- Standards for company licensing, redomestications, and control changes of domestic insurers.
The accreditation process, which includes a rigorous on-site review by independent consultants, occurs every five years and is complemented by annual interim reviews. These evaluations ensure that the Division maintains high standards in its regulatory practices, safeguarding the interests of the insurance-buying public in Massachusetts.
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.