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NAIC President: Repeal ‘Too Big to Fail’

Speaking at the Property/Casualty Insurance Joint Industry Forum, National Association of Insurance Commissioners President and Wisconsin Insurance Commissioner Ted Nickel said he does not subscribe to the concept that some companies are “too big to fail” and should be downsized...
January 25, 2017

Speaking at the Property/Casualty Insurance Joint Industry Forum, National Association of Insurance Commissioners (NAIC) President and Wisconsin

Insurance Commissioner Ted Nickel said he does not subscribe to the concept that some companies are “too big to fail” and should be downsized. Nickel said he would advocate for the repeal of the Financial Stability Oversight Council (FSOC) designation process that labels some companies systemically important financial institutions.

“Too big is not a risk to me,” said Nickel. “A risk is doing dumb things and not having yourself positioned accordingly, not thinking about future areas that might be of concern and addressing those up front.” He noted that monitoring the solvency of insurance companies should be done at the state level “where it rightfully belongs.” Nickel added, “I think there’s an argument that there’s such a premise of too risky to fail. And too big and risky to fail. But just too big that’s not something that I subscribe to.”

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