FOR IMMEDIATE RELEASE
NAIC CALLS ON INTERNATIONAL BODY TO INCREASE
IAIS limits stakeholder participation against
WASHINGTON, D.C. (Oct. 27, 2014) -At the International Association of Insurance
Supervisors (IAIS) Annual General Meeting on October 25, members voted on
observer membership status for non-member stakeholders. The vote, which
took place in closed session, amended IAIS bylaws to end the observer
membership status, which included participation in some IAIS meetings, in
favor of creating new stakeholder consultation procedures.
"I am extremely disappointed in the outcome of Saturday's vote to end
observer status at the IAIS," said Adam Hamm, NAIC President and North
Dakota Insurance Commissioner. "Observers run the range of consumer
advocates, insurance experts, and industry representatives - all of whom
have critical input to share on the real-world consequences of decisions
made by regulators. Shutting them out of the official process in favor of
'invite only' participation deprives IAIS members and stakeholders alike
and could diminish the credibility of decisions made at the IAIS."
The new consultation procedures being developed will likely outline how
certain stakeholders may participate in portions of some meetings by
invitation only as well as the creation of open hearings with stakeholders
separate from IAIS meetings. The NAIC delegation was united in its strong
opposition to the measure to close meetings to stakeholders.
"Over the years, the IAIS has benefitted from the input and ideas
provided by our observers which not only result in quality end products,
but also provide our stakeholders with a better understanding of our work
and our development processes," said Kevin McCarty, Florida Insurance
Commissioner, who serves on the IAIS Executive Committee. "U.S. state
regulators have pushed for more transparency and openness within the IAIS
over the years, and therefore we are concerned about changes which will
result in less transparency and openness by closing all meetings to
stakeholders going forward."
U.S. state regulators are not alone in their concern with the new
process. Congress has introduced a bipartisan
resolution calling for openness and transparency by the IAIS.
the end of the day, any global insurance standards that are enacted will
have a direct impact on consumers and our markets and so they deserve a
seat at the table," said Monica Lindeen, NAIC President-Elect and
Commissioner of the Montana Office of Securities and Insurance.