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NAIC Reaffirms Its Opposition to Federal Regulation of Insurance

The National Association of Insurance Commissioners (NAIC) reaffirmed the strengths of state-based regulation Nov. 16, at a hearing of the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity. Joseph Torti, III, Rhode Island Deputy Director and Superintendent of Insurance and Banking, testified on behalf of the NAIC
November 22, 2011

The National Association of Insurance Commissioners (NAIC) reaffirmed the strengths of state-based regulation Nov. 16, at a hearing of the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity. Joseph Torti, III, Rhode Island Deputy Director and Superintendent of Insurance and Banking, testified on behalf of the NAIC.

The chair of the subcommittee, Congresswoman Judy Biggert (R-Ill.), commended the work of state regulators and affirmed that insurance continues to be a growing and vibrant source of financial security for many Americans.

Commissioner Torti also addressed the requirement that the Federal Insurance Office (FIO) issue a report on insurance regulation by January 2012. The report will include legislative recommendations and look at the potential for federal regulation of insurance, among other requirements. “We remain strongly opposed to federal regulation of insurance but hope to have constructive and meaningful input into this report to ensure our views are reflected,” Torti said.

“This type of review is healthy for our system, but historically this scrutiny has focused on the obvious challenges inherent to our multi-jurisdictional approach with emphasis on cost and redundancy,” Torti said. “Rarely have these issues been balanced against the strengths of our regulatory system’s check and balances and peer review that helped the insurance sector weather the financial crisis far better than others. We look forward to meeting directly with FIO to encourage a balanced view as it finalizes its study.”