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 2025 Budget
The 2025 Annual Budget process began in the summer of 2024, with a proposal from the Compact Office to the Finance Committee. The Finance Committee held a public call to receive comments on its annual budget recommendation, which included a proposal for revenue realignment and new resource request. The 2025 annual budget package was exposed by the Management Committee for public comment with a public hearing on October 24, 2024. The Commission adopted the 2025 Annual Budget on November 16, 2024, during the in-person Joint Meeting of the Management Committee and Commission.
The 2025 Annual Budget anticipates revenues and expenses of approximately $4.5 million and $4.04 million, respectively. Included in the 2025 Annual Budget is a new realigned filing fee. Filers will pay a base filing fee which was previously the per filing fee. Additional filing fees may be due depending on the number of product components included in the filing submission. A new full-time director or regulatory affairs was approved and is anticipated to be retained in the spring. Revenues are forecasted to be 20% over the 2024 budgeted revenue. The new fees attribute to this increase. Expenses are 11% over 2024 expenses. The new resource primarily attributes to this increase.
Should you have any questions about the Interstate Insurance Compact's Annual Budget, please contact the Insurance Compact Office.