COLUMBUS — Ohio has been chosen to head an innovative national insurance body focused on consumer protection and the modernization of state insurance regulation. Ohio Department of Insurance director Jillian Froment was selected by state insurance regulators to serve as chair of the Interstate Insurance Product Regulation Commission, also referred to as the Insurance Compact.
"I look forward to working with member states and regulators to ensure the Insurance Compact continues to focus on consumer protection while supporting a growing industry with consistent and common sense regulatory standards," Froment said.
The Insurance Compact, currently a collection of 45 states, became operational in 2006. It works to ensure strong consumer safeguards are in asset protection insurance products through uniform legislation, regulatory oversight, and other means, such as for life insurance, annuities, disability income and long-term care insurance. More than 100 uniform standards covering all individual product lines and several employer/employee group products have been adopted by the Insurance Compact. Froment expects continued progress in 2018.
"Our goal is to build upon our innovative state-based regulatory model by adding more uniform standards, improving key processes and fostering dialogue with non-compacting states," she said.
An implemented transformative tool is a central electronic filing point for asset protection insurance products that has expedited the company product filing step, and review and approval by state regulators. Products are approved once for market in Insurance Compact states instead of companies filing in every state. Consumers get faster access to competitive insurance products.
“The Insurance Compact is enhancing the speed and efficiency of regulatory decisions and allowing companies to compete more effectively in the modern financial marketplace,” Froment said.