National Conference Of Insurance Guaranty Funds

National Conference of Insurance Guaranty Funds (ncigf) is a business association as defined within internal revenue code section 501(c)(6) which advances the collective missions of its members and provides National assistance in various areas for property and casualty Guaranty Funds. Ncigf assists in the coordination between the liquidators and property and casualty Guaranty Funds in multi-state insolvencies, monitors litigation and legislation affecting Guaranty Funds, conducts various educational and training programs, provides information concerning the property and casualty Guaranty fund system; and provides a forum for discussion of Guaranty fund related issues.

Ncigf provides operational support, communications and public policy development to its members, the state property and casualty Insurance Guaranty Funds. The ncigf also assists property and casualty Insurance Guaranty Funds by providing them with current legislative information and educational training opportunities.see schedule o for 2022 service accomplishments highlights.highlights of our 2022 accomplishments include:mitigating "readiness risk": Guaranty Funds have a rich history of adaptation and flexibility during those rare occasions when an Insurance company becomes insolvent. As the Insurance industry continues to evolve its technology and business practices and responds to public policy changes, the challenge for the Guaranty Funds to adapt grows steeper. Ncigf is amid a multi-year initiative to smooth the frictions that pose a threat to the ability to respond promptly to consumers.focus on pre-liquidation planning:ncigf continues to promote earlier pre-liquidation planning in various forums. Because of the need to transition data immediately when the Guaranty Funds are triggered and the complexity of products such as large deductible and cyber liability, this planning needs to begin before a formal insolvency proceeding is ordered. This year the "e" committee at the naic adopted a pre-liquidation memorandum of understanding (mou). It is now available on the ritf website for use by insolvency practitioners. Moreover, the mou and accompanying revisions to various handbooks have been referred to naic working groups that address troubled company issues before a formal insolvency proceeding is commenced. We expect action on these referrals in 2023.restructured business:statutes that authorize Insurance company divisions or Insurance business transfers (ibts) continue to be adopted in various states, generating concerns about the status of Guaranty fund coverage. The matter is particularly urgent in that both division statutes and ibts make it clear that there is no remaining liability on the part of the transferring entity for the claims transferred under these statutes. The ncigf board of directors adopted a position on this matter stating that if coverage existed on a claim before the restructuring transaction it should remain in place after the transaction. Conversely, if coverage was not available before the transaction it should not be created by the transaction. As many current Guaranty fund laws may not resolve these claims in this way, ncigf developed a statutory remedy. This remedy has been adopted in four states and efforts continue to promote the amendment in additional jurisdictions. Most recently a draft in this regard has been recommended to the receivership and insolvency task force (ritf) at the naic. The naic is in the process of reviewing this draft.cyber security Insurance coverage in insolvency:cyber security Insurance coverage in insolvency is an evolving issue. No specific policy forms have thus far been developed to address these risks. Moreover, the policies provide notification, remediation, and forensic services along with claim payments. Response time to provide such services is often quite short. Should an entity that covers these risks become insolvent and be ordered into liquidation the Guaranty Funds would be called upon to act. The ncigf has developed statutory language in this regard and will be implementing educational programs for our own member community, industry groups and organizations such as the naic. Thus far amendments to adopt cyber liability revisions to the Guaranty fund act have been adopted in California and are pending in Illinois and Massachusetts. A draft change to the naic model property casualty Guaranty fund act has also been presented to the ritf. We expect the naic review of this draft to commence in the near future.ncigf tabletop exercise:a "tabletop" exercise was conducted at the ncigf fall workshop. During this exercise participants discussed various procedures that would need to be implemented with regulators prior to a formal liquidation process and troubleshot the various challenges that might arise in this context. At this point the innovations and operations committee will undertake various projects related to needs identified in this exercise and has made referrals to other ncigf committees.it core services upgrade:ncigf staff made critical updates to the organization's widely used uds data mapper (www.udsdatamapper.com), including bug fixes, implementation of new features, and critical internal updates needed to facilitate and accelerate future development and growth of the application.memberconnect upgrade:the association's member communication and collaboration hub were successfully migrated to a new cloud platform, confluence cloud. Using this "buy vs build" approach resulted in accelerated migration to the new platform as well as considerable cost-savings over an in-house development approach.ncigf technology issue tracking and productivity enhancements:ncigf added a new ticketing system for submission and tracking of support requests from members, internal staff, and gsi clients. The system allows for self-service request reporting if desired and tracking of the complete history of individual requests from start-to-finish. Over time, the body of knowledge built from tracked requests is becoming an asset that enables staff to resolve recurring issues more quickly.new support options for ncigf members:in conjunction with the issue tracking system, ncigf introduced a new service request portal for gsi clients and ncigf members that provides greater ease of requesting services, and more control and visibility into the status of open support requests.improved software development pipeline:ncigf technology staff implemented the continuous integration/continuous deployment (ci/cd) methodology for software development. This widely used approach to the automation of building, testing and delivery of software results in fewer defects and faster delivery of quality software applications by our software engineering team.successful external cybersecurity testing:ncigf engaged a cybersecurity firm to conduct internal and external penetration tests, both of which were passed successfully.