FOR IMMEDIATE RELEASE
NAIC URGES U.S. INSURANCE REGULATORY INPUT TO FSB
WASHINGTON, D.C. (March 13, 2014) - In a letter to U.S. members of the Steering
Committee of the Financial Stability Board (FSB), the National Association
of Insurance Commissioners (NAIC) requested support for strengthening U.S.
participation on the board by allowing regulatory input and expertise in
discussions that impact U.S. insurance markets and policyholders. The
letter was addressed to Daniel K. Tarullo, Governor of the Federal Reserve
Board; Mary Jo White, Chair of the Securities and Exchange Commission; and
Marisa Lago, Assistant Secretary, Department of the Treasury.
"As the FSB is increasingly driving international standard-setting
beyond its primary focus on financial stability, its work has the potential
to impact the U.S. insurance sector," said Adam Hamm, NAIC President and
North Dakota Insurance Commissioner. "We are seeking to strengthen U.S.
participation in the FSB by directly providing our insurance expertise and
regulatory perspective to these important discussions that will have import
for the companies we regulate."
To illustrate the far-reaching implications of FSB discussions as they
relate to regulated companies, insurance consumers and the financial system
in general, the NAIC highlighted how the U.S. insurance market represents
one third of the total insurance market worldwide.
"If FSB proposals are to be relevant and considered for integration into
the U.S. regulatory regime where appropriate, then U.S. participation in
FSB discussions should reflect our unique regulatory structure and not be
hampered by arbitrary limitations and seat assignments that place the U.S.
at a disadvantage relative to more consolidated regulatory regimes,"
The letter also pointed to examples of FSB working groups that directly
impact insurance regulation, such as the Standing Committee on Supervisory
and Regulatory Cooperation, which deals with systemic risk and group
supervision issues, and the Insurance Cross Border Crisis Management Group
under the Resolution Steering Group.
to read the letter.