“The National Conference of Insurance Legislators (NCOIL) took positive steps this weekend during its spring meeting outlining key areas where state legislators and regulators can impact the international dialogue on insurance regulation,” according to the Property Casualty Insurers Association of America (PCI).
The PCI explained that “NCOIL’s International Issues Task Force sought input from key state legislators, industry experts, consumer advocates, state regulators and other state officials regarding what should be top priorities and how to best approach them. During the meeting PCI highlighted both substantive and procedural concerns that should be key elements of NCOIL’s strategic approach to international issues.”
David Snyder, VP-international issues for PCI said: “The advancement of global capital standards that may harm U.S. insurers are among our top concerns. Additionally, we would like to see NCOIL work to guard against new one-size-fits-all global regulatory mandates on corporate governance and market conduct.
“We also believe there is a strong need for the federal government and state insurance regulators to have a coordinated policy position. The failure to establish a consensus U.S. position among the federal government and state regulators weakens our ability to influence outcomes. It will be important to keep in check international mission creep as some international bodies attempt to expand their influence beyond their scope of responsibility. We also would like to see NCOIL work to oppose directives that lack cost-benefit analysis, transparency and a focus on the consumer.”
The PCI’s bulletin also indicated that, on the global stage, “there are growing calls to move toward imposing bank centric, one-size-fits-all regulations on U.S. insurers. PCI opposes the use of standards designed for banks.”
Snyder said: “The wrong global standards could actually create systemic risk, increase consumer costs and harm competition by forcing smaller and midsize companies out of business. Beyond the technical issues, it is critical for NCOIL along with allies to weigh in politically or the situation will become irreversible.”
NCOIL “devoted substantial time to international issues” at the meeting. The task force met both Friday and Saturday “to begin a dialog that will lead to action over the next several years as NCOIL weighs in on international issues.
Frank O’Brien, VP-state government relations for PCI, added: “The task force engaged in very active discussions regarding the wide range of issues being discussed in the global arena as well as the important regulatory perspective that state lawmakers and regulators bring to the table. It was clear that NCOIL President Rep. Greg Wren of Alabama and his colleagues from around the country recognize that the time to act is now. Through dialog such as this, state policymakers can coordinate strategies to promote the soundness of state-based insurance regulation and the consumer protections that it entails.”
Source: Property Casualty Insurers Association of America (PCI)
Topics USA Legislation
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