The National Association of Insurance Commissioners released a proposed 2006 budget that calls for a nearly 4 percent increase in spending over the current plan.
The consolidated budget calls for projected revenue of $59.3 million, or a less than 1 percent increase over this year's figure, and spending of $58.3 million for a 3.63 percent increase over the current spending plan.
NAIC President Diane Koken, who also serves as Pennsylvania's insurance commissioner, said the spending plan supports regulatory modernization efforts.
Robert Zeman, senior vice president for the Property Casualty Insurers Association of America, said that on the positive side, the proposed spending increase was modest.
"Our members have lingering concerns about the overall size of the NAIC budget and its surplus, and we have expressed those concerns previously," he said.
Among the budget's features:
o Database fees are budgeted at $1.4 million for a 5.4 percent decrease from the 2005 budget. A portion of the projected '06 decrease of $790,850 results from less-than-anticipated 2004 premium growth and consolidation activity within the industry in 2004.
o Salaries are budgeted to increase 5.1 percent from the 2005 budget, representing an average annual increase of 3.5 percent on base salaries offset by an increase in turnover, and full-time equivalent additions made in 2004 and proposed for 2006.
o Travel is budgeted to increase 16 percent from 2005 budgeted levels.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
