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McCarty Lectures IAIS Director on Transparency

Speaking at the National Association of Insurance Commissioners (NAIC) fall meeting in Washington, D.C., Florida Insurance Commissioner Kevin McCarty publically registered the NAIC's displeasure with a recent move by the International Association of Insurance Commissioners (IAIS) to restrict debate on proposed global capital rules for insurers...
November 19, 2014

Speaking at the National Association of Insurance Commissioners (NAIC) fall meeting in Washington, D.C., Florida Insurance Commissioner Kevin McCarty publically registered the NAIC's displeasure with a recent move by the International Association of Insurance Commissioners (IAIS) to restrict debate on proposed global capital rules for insurers.

McCarty, who serves on the IAIS Executive Committee, told IAIS Secretary General Yoshi Kawai that the NAIC would "provide an education on American transparency." The remark was a reference to a recent decision by the IAIS to allow stakeholders to attend meetings where regulations are being negotiated by invitation only, "when necessary" to provide comment on specific issues.

The action by IAIS to close its meetings is being viewed by some as an attempt to silence opposition from U.S regulators and other groups. Congressional resolutions have been sponsored by Sens. Jon Tester (D-Mont.) and Dean Heller (R-Nev.) in the Senate and Reps. Bill Huizenga (R-Mich.) and Greg Meeks (D-N.Y.) in the House, protesting the IAIS action. However, the U.S. Treasury Department, home to the Federal Insurance Office (FIO), supported the IAIS move to close off debate.

What It Means to Agents: The action by the IAIS to bar companies and trade groups from its meetings has sparked justified outrage. PIA has joined with the NAIC, the National Conference of Insurance Legislators (NCOIL), the Property Casualty Insurers Association of America (PCI), the National Association of Mutual Insurance Companies (NAMIC), members of Congress and others in opposition to the IAIS's lack of transparency.

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