State insurance regulators have a new tool to conduct more efficient market analyses of companies to better root out anti-consumer practices.
The National Association of Insurance Commissioners said Tuesday that the Market Analysis Review System (MARS) is ready for use by state analysts.
The technological enhancement will automate the market analysis of companies and reflects regulators' emphasis on the kind of market conduct practices that do not rely on periodic and costly individual company examinations, NAIC said.
Market conduct reform remains a crucial linchpin in the effort to standardize state insurance regulation so large national carriers no longer have to accommodate the vagaries of 50 state insurance departments, NAIC noted.
Regulators said they hope that by focusing on market trends and other data through the market analysis process, they can target so-called "outliers" without effort and expense of individual exams.
MARS is designed to document that a review was performed on select insurance companies, as well as to document a market analyst's input, conclusions and recommended next steps.
"MARS is an important step in enhancing the uniform framework and coordination of market analysis," said Susan Voss, Iowa insurance commissioner and chair of the NAIC Market Analysis Working Group.
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