A group of public entity pools and Self-Insured Groups (SIGs) convened in July to informally discuss state regulatory environments, perceived shifts within regulatory relationships, and possible solutions or next steps. Suggestions from the group to all pools and SIGs included:
- Work to ease regulator concerns and start right now to build trust with your
- regulators or could-be regulators (by time the crisis happens, it’s too late)
- Develop a pooling education plan for your state legislature and regulators
- Watch what is happening in other groups because regulation may be a matter of
- when, not if
- Build strong relationships with other pools and SIGs in your state, and
- collaborate to communicate with regulators
- Define a person within your organization to establish and maintain a good
- regulator relationship
- Be sure key staff are politically savvy enough to manage the future of regulation
- Engage in more Board governance education and training – the Board should
- understand everything being discussed with or by the regulators and should
- exercise true independent oversight
- Educate your staff and Board about the wide variation of acceptable financials
- and the rationale behind different financial goals, so they understand the
- totality of the spectrum
- Consider accreditation or certification options for your organization, because
- strong self-regulation is a good answer to why state legislation is not needed
- Review all coverage and related forms for consistent language that your coverage
- is not insurance (unless you are classified as such)
- Post your organization’s financials on your website
- Track the cost of compliance with regulations
The group outlined common expectations for turnover in regulators because of
retirements and related transitions, potential for lacking regulator familiarity with pools and SIGs, likely expectations that “one size fits all” regulations might be determined, and the possibility that one bad outcome in a pool/SIG could have ripple effect on all others. Contact Ann Gergen for more information about the conversation or meeting outcomes. And, consider attending a presentation about shifting state regulation of pools being given at this year’s Fall Educational Forum by former Nebraska Senator and Governor Ben Nelson, who was also CEO of the National Association of Insurance Commissioners from 2013 – 2016.
Source: AGRIP