You are here:HomeNews CenterInsurance News2014Ben Nelson, Michael McRaith, PIA's John G. Lee in Panels at NAMIC Convention

Ben Nelson, Michael McRaith, PIA's John G. Lee in Panels at NAMIC Convention

Some of the most influential players in the insurance industry took part in panels during the 119th annual convention of the National Association of Mutual Insurance Companies Sept. 21-24 in National Harbor, Maryland...
October 2, 2014

Some of the most influential players in the insurance industry took part in panels during the 119th annual convention of the National Association of Mutual Insurance Companies (NAMIC) Sept. 21-24 in National Harbor, Maryland.

A high-level panel on international insurance regulation took place on September 24. Participating in the discussion of the future of insurance regulation were former senator and current CEO of the National Association of Insurance Commissioners (NAIC) Ben Nelson, Federal Insurance Office (FIO) Director Michael McRaith, senior advisor on insurance to the Federal Reserve Thomas Sullivan and Missouri Insurance Director and former member of the Financial Stability Oversight Council (FSOC) John Huff. Panel members exchanged views on the post-Dodd-Frank regulatory environment, the emerging intersection of international regulatory standards and their impact on the U.S. system.

NAMIC President and CEO Chuck Chamness, who moderated the panel, said the insurance industry has concerns about the speed with which the International Association of Insurance Supervisors (IAIS) and the G-20's Financial Stability Board (FSB) are moving to implement global capital standards and other international regulatory standards.

IAIS recently announced a new proposed policy that meetings where new capital standards are discussed will be invite-only, with insurance companies and consumers denied access to the deliberations. This prompted outrage in the insurance industry and sparked resolutions in Congress to put the country's lawmakers on record as opposed to the IAIS proposal to cut off public debate.

McRaith said the international standards were being developed by consensus among international regulators and that no one "can just walk into the room and say this way of doing things is the best because this is how we do it." But Huff said the United States should be doing more to push the IAIS to be more open in its process.

Nelson agreed with Huff, saying the transparency issue is just one area where the United States should be doing more to put pressure on international regulators. He said the capital standards for systemically important insurers being developed by IAIS should do more to take into account the fact the U.S. state-led regulatory system makes capital less fungible across a group's entire enterprise because each legal entity is regulated separately.

"That is by design and that system has worked," Nelson said. "We also need to know that just because we need to be respectful of Solvency II, it doesn't mean we have to adopt Solvency II. Common results can be achieved through very different systems if they are overseen properly." To view the panel discussion, click here.

 


 

PIA President Lee Participates in NAMIC Panel on Insurance Distribution

PIA National President John G. Lee was the only agent participant in a NAMIC panel discussion on September 23, Changing Distribution Channels, focused on the prospects of change in insurance distribution over the next two decades. Lee presented findings regarding customer preferences through research conducted by The PIA Partnership.