BestWeek: NCOIL, NAIC Leaders Work to Bury Hatchet, Optional Federal Charter.

OLDWICK, N.J. -- There is an old Washington adage, attributed to long-time Speaker of the House Sam Rayburn, in which he tells a young Democratic congressman, "The Republicans are our opponents. The Senate is our enemy." That idea may also apply to the rival National Association of Insurance Commissioners (NAIC) and National Conference of Insurance Legislators (NCOIL)--their enemy is optional federal charter legislation.

After long periods of tension and mutual recrimination, a certain detente has settled over their relationship, leaders of both organizations told BestWeek U.S./Canada.

"There's definitely been a thaw in this whole thing," said NCOIL President Brian Kennedy. "There's a lot more openness that's taken place here. There's a lot more discussion taking place."

NCOIL and the NAIC are stepping up their cooperative efforts in promoting state based insurance regulation, supporting the Insurance Compact, the National Insurance Producer Registry and other measures. Since taking the reins at their respective groups, Kennedy and NAIC President Sandy Praeger have been in regular contact. In fact, they released a joint statement ahead of NCOIL's recent spring meeting reaffirming a commitment to work together.

"We have the same goals. We serve the same master," said Praeger, the Kansas Insurance Commissioner. "Our primary responsibility is to insurance consumers and that's who we're responsible for."

Kennedy, a Rhode Island state representative, has been a vocal foe of the NAIC, describing their relationship as a "cold war." He repeatedly clashed with former NAIC President Walter Bell, particularly over issues of open meetings and budgeting. At one point, Kennedy referred to what he called secrecy and a lack of transparency by referring to the NAIC as a "mystical organization" (BestWire, June 14, 2007).

Also, in BestWeek Europe:

When the U.K. Financial Services Authority releases a paper on the commercial brokering industry before the end of March, the new chief executive of the Association of Insurance and Risk Managers will be watching closely.

Also, in BestWeek U.S./Canada:

The bad news got worse for mortgage guaranty insurers in the fourth quarter, as the continued deterioration of the U.S. housing market caused several of the largest firms to post record quarterly losses.

And in both editions of BestWeek:

The Best's Global Insurance Composite Index finished the week of March 6 down 10.50% from a year ago. The composite index reflects the performance of 170 insurance stocks. The week's top stocks were Gainsco, EMC Insurance Group, Catlin Group, Beazley Group, and Erie Indemnity.

The bottom five stocks were Universal American, CastlePoint Holdings, Conseco, NYMagic, and Affirmative Insurance Holdings.

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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.