NAIC HOSTS INTERNATIONAL SYMPOSIUM
Federal Reserve Vice Chairman Delivers Keynote Address

WASHINGTON, D.C. – (February 23, 2006) – With the goal in mind to demonstrate and address how globalization is reshaping the insurance world, the National Association of Insurance Commissioners (NAIC) is hosting its international symposium, “State Insurance Regulators: Meeting Tomorrow’s Global Challenges Today,” on February 23-24 in Washington, D.C. The symposium will address financial services markets and key regulatory developments in Europe, Latin America, China and India. This year’s event features a diverse panel of speakers and presenters, including keynote addresses from Roger Ferguson, Vice Chairman of the Federal Reserve Board, and lead regulators from India and China.

In his address keynote address, entitled, “Globalization, Insurers and Regulators: Shared Challenges for Collaborative Solutions,” Vice Chairman Ferguson, who is also chairman of the Financial Stability Forum, said there are three important factors to focus on moving forward: effective collaboration among regulators,

enhanced transparency and public disclosure, early and continuous dialogue on regulatory developments. 

“I am encouraged that the NAIC has met two times a year with the European Union since 1999 to address transatlantic issues in insurance,” said Ferguson.

The symposium underscores the increasing involvement of the NAIC in the international arena of insurance regulation.

“We will focus on the challenges and successes in China, India, Latin America and Europe and how they influence state regulation and our domestic market,” said Alessandro Iuppa, NAIC President and Maine Insurance Superintendent. “It is my sincere hope that the subject matter will precipitate a meaningful dialogue and an understanding of why we must continue to work both inwards and outwards from our borders and to recognize the mutual benefit of working together.”

View Alessandro Iuppa's address

View Roger Ferguson's Address

In several notable areas, the NAIC has taken an active role in utilizing its experience and expertise, including leadership positions in major international bodies of financial regulators. Principal among these are the International Association of Insurance Supervisors (IAIS), which the NAIC currently chairs, and the International Accounting Standards Board (IASB).

In the area of global economic security, the NAIC contributes to the work of the Joint Forum, where banking, securities and insurance supervisors tackle cross-sectoral regulatory issues, and the Financial Stability Forum, where finance ministers from the world’s largest economies address financial sector developments that could threaten global economic stability.

The NAIC also serves as a technical expert for federal agencies, such as the U.S. Departments of Treasury and Commerce, in the development of financial policy and the pursuit of U.S. trade objectives, including with NAFTA implementation and the WTO.

Additionally, since 1999, the U.S. has held semi-annual NAIC-EU Regulatory Dialogues to address issues affecting transatlantic insurance business, leading to negotiation of a Memorandum of Understanding (MOU) on information exchange and discussions on supervision of reinsurance, which is critical for spreading insurance risk around the world. Similar exchanges have taken place with insurance regulators in Japan, China, India, Brazil, Russia, and Latin America.

The NAIC has entered into MOU’s on regulatory cooperation with China, Vietnam, Brazil, and most recently Iraq. The NAIC also welcomes foreign participants in an International Internship Program designed for non-U.S. regulators. After the success of the China Intern-Pilot Program in 2004, the NAIC developed a formal International Internship Program last year to advance working relations with foreign markets with an emphasis on the exchange of regulatory techniques and technology. Last fall, 10 interns from China, Korea, Vietnam and Brazil participated in the program which is part of the NAIC’s International Program for Education and Regulatory Cooperation. The International Intern Program is conducted twice a year in the spring and fall.

More than 100 attendees from around the globe are in attendance at this year’s international insurance symposium. The conference concludes tomorrow.

About the NAIC

About the NAIC Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm