FOR IMMEDIATE RELEASE
NAIC Responds to MetLife Court Decision
WASHINGTON (April 07, 2016) — The U.S. District Court’s opinion released today confirms what members of the National Association of Insurance Commissioners (NAIC) have long argued: the Financial Stability Oversight Council’s (FSOC) designation of Metlife as a systemically important financial institution is flawed.
“State insurance regulators are directly involved in national and international efforts to limit the potential for a financial firm to disrupt the global economy,” said North Dakota Insurance Commissioner Adam Hamm, who is also the NAIC’s representative on the FSOC. “Too often, discussions regarding systemic threats to the economy don’t acknowledge the unique characteristics of the insurance business model or the strengths of our stable state-based regulatory system.”
“State regulators serving on FSOC have previously pointed out concerns with its analytical approach, including FSOC’s inability to demonstrate that MetLife’s failure would disrupt the broader economy,” said John M. Huff, NAIC President and Missouri Insurance Director. “Insurance regulators continue to improve our supervisory tools, expanding our abilities to effectively supervise — a job we have done successfully for more than 145 years. While we share the objective of reducing systemic risk, the court’s opinion confirms our assertion that FSOC has missed the mark concerning insurance.”