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 2024 Budget
The 2024 Annual Budget process began in the summer of 2023, with a proposal from the Executive Director working with the NAIC Finance Department to the Finance Committee. The Finance Committee held a public call to receive comments on its annual budget recommendation, which included a resource request. The 2024 annual budget package was exposed by the Management Committee for public comment and held a public hearing on November 9, 2023. The Commission adopted the 2024 Annual Budget on December 3, 2023, during the in-person joint meeting of the Management Committee and Commission.
The 2024 Annual Budget anticipates revenues and expenses of approximately $3.73 million and $3.62 million, respectively. The 2024 Annual Budget demonstrates the Compact's continuous growth. Revenues are budgeted to be 7% over 2022 budgeted revenues of $3.47 million. Expenses are anticipated to be approximately 9% over 2022 budgeted expenses of $3.32 million. Two new additional resources were included in the budget and are anticipated to be hired in June.
Should you have any questions about the Interstate Insurance Compact's Annual Budget, please contact the Insurance Compact Office.