In a recent interview with National Underwriter, Andrew Beal, NAIC general counsel, said that NAIC is not trying to absorb the NIPR. A decision was made to bring the database under NAIC auspices, he continued, because NAIC wants to ensure that the confidentiality of data is ensured.

Dave Snyder, a representative with the American Insurance Association, Washington, raised the issue of the NAIC anti-fraud database, telling regulators at the liaison meeting that while the concept is a good one, making the NAIC a collector of data that then passes through to the states is not a good idea.

Speaking of plans for an auto database, Mr. Snyder said that AIA supports the NAIC's involvement as a liaison between the industry and the motor vehicle bureau but has concerns about confidentiality of data shared if the industry starts collecting such information.

Linda Lanam, a representative with the American Council of Life Insurers, Washington, said that currently, market conduct analysis conducted in conjunction with the market conduct annual statement is not a national database. But if it ultimately does become a national database, then the ACLI would have the same concerns as it would have with any of the other databases: the confidentiality of documents.

Confidentiality was a concern also raised by Julie Glackenbach, a representative with the Property Casualty Insurer's Association of America (PCI), Des Plaines, Ill. With greater coordination among states, there is also greater sharing of information, she explained.

Insurers need to make sure that information is confidential, she added. It would be helpful to see the confidentiality agreements that have been made, said Ms. Glackenbach. Some of the data includes not only information from companies but also personal data of individuals, she said. This raises a concern over "trickle back liability" to insurers, she noted.

On the issue of confidentiality, incoming NAIC President Alessandro Iuppa, the Maine insurance commissioner, said that not one instance of inappropriate release of information was cited by industry participants. And, according to Mr. Iuppa, the information collected as part of a regulatory effort by the NAIC is the most efficient way to aggregate data.

Joel Ario, Oregon insurance commissioner, said that he disagreed with ACLI's assessment of NIPR. The fingerprint database will be a regulator database in which regulators own the data, he said. NIPR will be given exclusive use of that data, he added.