What is NAIC number?
Fact-checked with HomeInsurance.com
The goal of the National Association of Insurance Commissioners (NAIC) system is to coordinate regulatory oversight, establish best practices and standards and conduct peer review to standardize insurance regulation across the U.S. Insurance companies use NAIC numbers for training and education. It provides technology solutions, programs, like the Regulator Professional Designation Program, newsletters, industry publications and much more.
The NAIC also provides information and online tools for consumers. The Insure U consumer education program by the NAIC provides consumers with basic information about types of insurance–life, health, homeowners, renters and auto. Insure U for small businesses provides tips and information about small business insurance.
The NAIC comprises seven committees that cover property and casualty insurance, life insurance and annuities, market regulation and consumer affairs, health insurance and managed care, financial regulation standards and accreditation, the financial condition of insurers and international insurance relations.
What is NAIC?
The insurance sector is highly regulated in the United States. The National Association of Insurance Commissioners (NAIC) is a nonpartisan, nonprofit organization led by chief insurance regulators in all 50 states, the District of Columbia, and five U.S. territories.
The NAIC was formed to establish best practices, provide support, conduct peer reviews and institute governing standards for the U.S. insurance industry. It is often confused with the North American Industry Classification System that lists, collects and analyzes data on all industries.
The NAIC is headquartered in Kansas City, MO, and has offices in Missouri, New York and Washington, D.C. The NAIC is made up of various committees and working parties, with the goals to:
- Protect the public interest
- Promote competitive markets
- Facilitate the fair and equitable treatment of insurance consumers
- Promote the reliability, solvency and financial solidity of insurance institutions
- Support and improve state regulation of insurance.
What is an NAIC code?
All licensed and authorized insurance companies in the U.S. are assigned a five-digit NAIC number by the NAIC. The code, which can be found on the NAIC database, also shows consumer reports, such as the number of closed complaints for an insurance company, any fraud or actions taken against the company and company financial data.
Most companies’ NAIC numbers vary from one kind of insurance to the next. For instance, Allstate auto and homeowners insurance NAIC number is different from the company’s life insurance NAIC number. And, Liberty Mutual Insurance has one code for homeowners and auto and another for fire insurance coverage. This can be confusing for consumers, so it’s important to research a company’s NAIC number to ensure it’s accurate.
NAIC codes are only assigned to risk-bearing entities, which is a company with the probability that an actual return on an investment will be lower than the expected return. You can apply for a NAIC code on the NAIC website.
Some of the largest insurance carriers found on the NAIC database along with their NAIC numbers include:
- AAA Life – 71854
- Aetna – 78700
- Allstate – 19232
- American Family – 19295
- Anthem – 60217
- Geico – 22055
- Liberty Mutual – 23043
- MetLife – 13092
- Prudential Financial – 68241
- State Farm – 25143
Why is the NAIC important?
Although state-based, the NAIC aims to standardize the insurance industry across the U.S. It helps keep insurance companies in check and provides oversight for the entire industry. One of the most noteworthy accomplishments was creating uniform financial reporting for all insurance companies.
Other ways the NAIC helps is to bring insurance companies together and facilitate communication. It also ensures that insurance companies can payout during disasters by providing the assistance to make that happen. The NAIC also functions as:
- A central source of information.
- A reference for financial and legal services.
- A source for services insurance companies don’t have in their own states.
The NAIC also provides regulatory tools, educates members of Congress, makes sure the voices of state insurance regulators are heard and works with the media to understand the mission of the NAIC.
For consumers, the NAIC provides detailed information about insurance companies’ complaints, financial health and licenses. Consumers can look for information on health insurance, auto insurance, life insurance, flood insurance, homeowners insurance and more. The NAIC site also provides a place to file a complaint against an insurance carrier. If someone has an issue with their insurance company, the NAIC is the organization to contact.
Insurance companies can apply for an NAIC code on the NAIC website.
- The goal of the NAIC is to standardize insurance regulation across all 50 states, the District of Columbia, and five U.S. territories.
- All licensed and authorized insurance companies in the U.S. are assigned a five-digit NAIC code that represents their primary area of business within the insurance industry.
- Consumers can find out information about insurance companies, any complaints, licenses, their financial health and more.
- The NAIC helps keep insurance companies in check and provides oversight for the entire industry.
Because of the NAIC, consumers can rest assured that the same regulations and policies apply to all insurance companies no matter where they are located. NAIC codes make it easy to look up an insurance company, find closed complaints, any fraud or actions taken against the company and company financial data.