Department of InsuranceInsurance department
The California Ministry of Insurance demands that the actuarial regulations be published.
On August 10, the California Department of Insurance (CDI) published a Statement of Assurance ("Opinion") that requires the publication of subscription policies contained in P&C insurance claims, even if they contain sensitive and/or protected information. In our understanding, the statement, which was prepared to prevent consumers from engaging in lawsuits against the CDI, could have far-reaching implications for the commodities markets in California and beyond, particularly for InsurTech's innovative strength.
In the event that an insurance company neglects to file its subscription policy with each tariff request at the request of CDI, or if it files such a policy as classified and not publicly available, the opinion states that the request "does not contain and make available for consultation by the general of the information necessary for the Commissioner to fully assess the tariff amendment requested" and that the general population "... the full statutory time limit for analysis of a full tariff request would be unreasonably withheld...".
Accordingly, the CDI could consider such a request as'incomplete', which means that the necessary publicity is not initiated and the request is not pursued. This opinion clarifies whether the subscription provisions are publicly available, irrespective of whether they are provided by customers or competition. Apparently the CDI has been fighting this topic for some quite a while now, and the statement represents a significant change in CDI policies.
CDI has previously kept the Non-Life Insurance subscription policy in confidence if it was designated as "confidential", "proprietary" or "trade secret" unless a specific inquiry has been made for such information. This statement's possible impact on insurance companies and the entire Californian non-monetary goods industry could be significant, especially for InsurTech's further expansion.
If the CDI does not safeguard the IPRs of insurance companies and/or their innovative counterparts, the ruling could prevent the introduction of some novel credit ratings schemes and derivatives in California. Moreover, consumers groups can rely on the advice when trying to convince state insurance supervisors in other states (and the NAIC) to request publicly disclosed subscription regulations and other information to support tariff application such as "big data".