FOR IMMEDIATE RELEASE
NAIC Urges Congress to Protect U.S. Interests in International Insurance Negotiations
McPeak testifies on engagement with the European Union on insurance issues
WASHINGTON, D.C. (Sept. 28, 2016) —NAIC Vice President and Tennessee Insurance Commissioner Julie Mix McPeak testified before Congress today on behalf of the National Association of Insurance Commissioners (NAIC). The hearing, held by the U.S. House Financial Services insurance subcommittee, focused on U.S. engagement on insurance issues with the European Union (EU).
"After more than a decade of dialogue and information exchange, the EU has all the information it needs to recognize the U.S. insurance regulatory system and avoid future regulatory retaliation," testified McPeak. "Instead of negotiating a potentially preemptive agreement behind closed doors to solve a problem of the EU's creation, we encourage our federal colleagues to push back on the EU and urge them to reconsider their laws before agreeing to preempt ours."
"State insurance regulators are appreciative of Congressional engagement and thank Chairman Luetkemeyer and Ranking Member Cleaver for their leadership as negotiations on insurance issues internationally could have substantial ramifications," said NAIC President and Missouri Insurance Director John M. Huff. "In an environment of ever-increasing regulatory demands, it is imperative we are careful not to add an additional layer of regulatory burden for insurers in the U.S. or in Europe, an unnecessary burden that will ultimately be borne by consumers."
McPeak's submitted testimony detailed marketplace dynamics in the U.S. and EU, developments in Europe's transition to Solvency II, the ongoing EU-U.S. Dialogue Project and negotiations for a covered agreement for reinsurance collateral. Her oral testimony focused on the covered agreement process.
"We urge Treasury and USTR to take preemption of state insurance consumer protections and any expansion of the federal government's role in insurance regulation off the table," encouraged McPeak. "State legislatures and Congress should decide the specifics of U.S. insurance regulatory power and who shall exercise it – not federal bureaucrats, and certainly not the EU."
The hearing was called to provide information to Congress on the U.S.-EU Dialogue and its impact on U.S. insurance markets as well as international regulatory standards under consideration by the G-20, the Financial Stability Board (FSB), the International Association of Insurance Supervisors (IAIS), and other international supervisory authorities. McPeak also serves as chair of the NAIC's International Insurance Relations Committee and as vice chair of IAIS Executive Committee.
Read McPeak's submitted testimony