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P/C Insurers Did Not Contribute To Financial Crisis

The National Association of Mutual Insurance Companies will present a report, Financial Oversight Failure Highlights Effectiveness of Insurance Regulation, authored by former Illinois Director of...
January 22, 2009

The National Association of Mutual Insurance Companies will present a report, Financial Oversight Failure Highlights Effectiveness of Insurance Regulation, authored by former Illinois Director of Insurance Nat Shapo, to Congress. The report points out that credit default swaps have been miscategorized as insurance products and that the property/casualty insurance market did not contribute to the financial market meltdown. Additionally, Shapo's report suggests that insurance regulation on the state level coupled with disciplined risk management practices have helped insurers and policyholders maintain a mutually beneficial relationship.

What It Means to Agents:  NAMIC's report should help Congress focus on the facts: that the insurance industry's performance relative to the financial meltdown shows that our industry got it right, and state insurance regulators did their job well in ensuring the stability of the insurance sector. This should help counter the misperception that state insurance regulation failed - an impression being advanced by the advocates of federal regulation.

Financial Oversight Failure Highlights Effectiveness of Insurance Regulation (NAMIC)