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NAIC Blasts IAIS for Banning Stakeholders From Its Meetings

The National Association of Insurance Commissioners has blasted the International Association of Insurance Supervisors for voting, in a closed session, to revoke observer membership status for non-member stakeholders...
October 29, 2014

The National Association of Insurance Commissioners (NAIC) has blasted the International Association of Insurance Supervisors (IAIS) for voting, in a closed session, to revoke observer membership status for non-member stakeholders. The action means stakeholders will now only be able to attend IAIS meetings by invitation, "when necessary." The NAIC delegation was united in its strong opposition to the measure to close meetings to stakeholders.

"I am extremely disappointed in the outcome of Saturday's vote to end observer status at the IAIS," said Adam Hamm, NAIC President and North Dakota Insurance Commissioner. "Observers run the range of consumer advocates, insurance experts and industry representatives – all of whom have critical input to share on the real-world consequences of decisions made by regulators. Shutting them out of the official process in favor of 'invite only' participation deprives IAIS members and stakeholders alike and could diminish the credibility of decisions made at the IAIS."

The action by the IAIS – an organization of insurance supervisors and regulators from around the world – comes as the group rushes to develop global capital rules for the insurance market.

U.S. state regulators are not alone in their concern with the new process. Congress has introduced a bipartisan resolution calling for openness and transparency by the IAIS.

"U.S. state regulators have pushed for more transparency and openness within the IAIS over the years, and therefore we are concerned about changes which will result in less transparency and openness by closing all meetings to stakeholders going forward," said Florida Insurance Commissioner Kevin McCarty, who serves on the IAIS Executive Committee.

What It Means to Agents: The action by IAIS to close its meetings undermines the group's legitimacy. This action is being viewed by some as an attempt to silence opposition from U.S regulators and other groups to the global standards it seeks to impose while trying to cut off debate and discussion.

PIA joins the NAIC, the National Conference of Insurance Legislators (NCOIL), the Property-Casualty Insurers of America (PCI), the National Association of Mutual Insurance Companies (NAMIC), members of Congress and others in opposition to the IAIS's inexcusable lack of transparency.

NAIC Calls on IAIS to Increase Transparency (10/27/14)

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