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Leonardi Responds to European Criticisms of American Insurance Regulation

Connecticut Insurance Commissioner Thomas B. Leonardi, chair of the NAIC’s International Insurance Relations Committee, has dismissed a Peer Review of the US insurance regulatory system by the G-20’s Financial Stability Board (FSB)...
October 17, 2013

Connecticut Insurance Commissioner Thomas B. Leonardi, chair of the NAIC’s International Insurance Relations Committee, has dismissed a Peer Review of the US insurance regulatory system by the G-20’s Financial Stability Board (FSB). In September, the FSB called on the United States to move toward a federal regulatory system for insurance

“Let’s take a look at what happened during the financial crisis,” said Leonardi, in an interview after delivering the keynote address at the recent SNL Insurance M&A Symposium in New York.

“We have a [regulatory] model, the national state based system, that had been in place for 150 years that has worked very well, through numbers of financial crises going back to the Great Depression and through [the crisis of] 2008-2009,” Leonardi said. “Should we throw out that system that works in regulating the largest, most vibrant insurance system in the world, and adopt the bank model that failed miserably during the financial crisis? I think that’s ludicrous.”

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