Annual Budget

 

Annual Budget

Insurance Compact Budget Process

The Interstate Insurance Compact’s annual budget process is open and transparent with participation from Compact Members and all interested parties, including the Legislative Committee and the Industry and Consumer Advisory Committees. The Insurance Compact’s Executive Director is charged with drafting an annual proposed budget for review by the Compact membership. Throughout the development of the budget, there are numerous and rigorous reviews conducted by the Insurance Compact Office in consultation with the National Association of Insurance Commissioners (NAIC) Finance Department which provides accounting and financial services under the Insurance Compact - NAIC Services Agreement. The Compact Officers and Finance Committee review and agree upon a final proposed budget which is then recommended to the Management Committee for a public comment period. During this public comment period, all interested parties may review and submit comments regarding the proposed Insurance Compact Annual Budget. The final Budget is then the subject of a majority vote by both the Management Committee and the full Commission before it is accepted and implemented by the Compact Office.

Insurance Compact 2018 Budget

The 2018 Annual Budget process began in the summer of 2017 with a proposal from the Executive Director working with the NAIC Finance Department. After a vote of the members of the Management Committee, the Management Committee exposed the proposed budget as recommended by the Finance Committee for a public comment period with the intent of adopting the 2018 Annual Budget during the Compact’s annual meeting in November. The Commission adopted the 2018 Annual Budget during the November 27th joint teleconference of the Management Committee and Commission. The 2018 budget proposes revenues and expenses of approximately $2.29 million and $2.29 million, respectively.

The 2017 Annual Budget represents the fact that the Compact continues to grow its operations. There has been great success with the Compact's product review operations, and the Compact receives self-generated revenue from Compact filing fees. The operations are anticipated to continue to grow, and this Budget reflects that fact.

The Finance Committee will continue to assess the Insurance Compact budgetary needs on a quarterly basis as we move through the operational year. As is the nature of the organization, the financial needs and considerations of the Insurance Compact will evolve. The Compact Officers and Finance Committee, along with the Executive Director and Senior Operations Manager, will stand ready to make additional recommendations throughout the year as the financial progress of the Insurance Compact is evaluated.

Insurance Compact 2017 Budget

The Insurance Compact Management Committee exposed the 2017 Annual Budget for a public comment period in November 2016. The 2017 Annual Budget was approved by the Management Committee and Commission on December 9, 2016.

Should you have any questions about the  Interstate Insurance Compact's Annual Budget, please contact the Insurance Compact Office.