NAIC President-Elect: Move to Cloud, Personnel Part of Planned Deficits
October 16, 2019 by Timothy Darragh
COLUMBIA, S.C. – Keeping pace with market-level salaries and expenses related to migrating computer systems to cloud-based systems are parts of the National Association of Insurance Commissioners’ 2020 spending plan driving another year of deficit spending, its president-elect said.
Incoming NAIC President and South Carolina Insurance Commissioner Raymond Farmer told Best’s News Service the 2019 deficit and the anticipated 2020 budget shortfall are strategic, planned decisions to keep the organization on the cutting edge.
The NAIC recently released a proposed spending plan forecasting total 2020 expenses of $124.5 million and revenues of $117.6 million, for a proposed deficit of $6.9 million (Best’s News Service, Oct. 9, 2019.) In an update of the current budget, the 2020 spending plan projects a 2019 net negative operating margin of $8.8 million, an improvement from this time last year, when the budget projected a net negative operating margin of $11 million.
Click HERE to read the full story via AM Best.
