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NAIC Schedules Forum to Discuss "Opaque Process" at IAIS

Former Sen. Ben Nelson, CEO of the National Association of Insurance Commissioners (NAIC), has scheduled an Oct. 14 forum at the Brookings Institution in Washington, D.C., to discuss international regulatory developments...
September 25, 2014

Former Sen. Ben Nelson, CEO of the National Association of Insurance Commissioners (NAIC), has scheduled an Oct. 14 forum at the Brookings Institution in Washington, D.C., to discuss international regulatory developments. Among them is the announcement by the International Association of Insurance Supervisors (IAIS) that meetings where the capital standards are discussed will be invite-only, with insurance companies and consumers denied access to the deliberations. The proposed action by the IAIS comes as the group rushes to develop global capital rules for the insurance market.

"The NAIC has been actively working toward more transparency in how it conducts business," Nelson told Best's News Service. "We see this latest announcement from the IAIS as antithetical to what we have done at the NAIC and what the IAIS should be doing."

Meanwhile, resolutions have been introduced in the U.S. House and Senate to put the country's lawmakers on record as opposed to the IAIS proposal to cut off public debate. Resolutions were 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.

During a recent conference in Washington, D.C., state regulators, insurance executives and industry representatives told IAIS Secretary General Yoshi Kawai that the IAIS needs to hold more of its debates in public. Kawai responded by saying he hoped everyone understands that to develop standards in a hurry, "we need time to debate ourselves to formulate views ... otherwise, we just debate and we have nothing concrete."

What It Means to Agents: The proposal by IAIS to close its meetings is being viewed by some as an attempt to silence opposition from U.S regulators and other groups. PIA joins the NAIC, NCOIL, PCI, NAMIC, members of Congress and others in opposition to the IAIS's outrageous lack of transparency.

Move to Close International Meetings Sparks Outrage (PIA 8/27/14)

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