Ohio Director Says No to Federal Oversight, No to National Cat Plan

A public servant, attorney and community leader, Mary Jo Hudson officially took office as the 46th director of the Ohio Department of Insurance on Jan. 8, 2007. Just coming up on two years in office, Hudson speaks her mind on the pressing issues facing the industry. In an interview with Insurance Journal at the National Association of Insurance Commissioners’ meeting in September, she was adamant about the future stability of state insurance regulation over any federal oversight and said that AIG and its problem supported her position.

AIG, State Regulation
“I just think this loan would never have been made to AIG had it not had solid state-based insurance companies making up the bulk of the company that was the collateral, in effect, meaning the ownership of those companies. The stability is what gave the Feds confidence to make that loan. The Feds are expecting all of that money back, and there is absolutely no reason why they won’t get that back. It should not cost the taxpayers a dime,” Hudson said.

Hudson added that “as regulators have work to do to educate our legislators and the public better about what we do and that real stability in the insurance market which is the calm and the eye of this whole storm in the financial services market and that it is really due to the significantly superior regulation that states bring to the insurance market.

Catastrophe Plan
The Ohio director is also not a believer in a national catastrophe plan because she is concerned that the Ohioans will end up paying for damages in other coastal areas.

“Ohioans live in a lower risk state and we pay rates accordingly,” Hudson said. “There are a lot of other Midwestern states that have similar weather. We don’t feel that our taxpayers should have to share the burden with folks that live in much riskier areas and choose to live there.” She added that there are some intriguing proposals out about more regional rating that we will continue to watch.

Open Door Policy
Hudson describes her relationship with agents a good one and says she has an “open door” policy. She resurrected the Agent Advisory Council and believes strongly in an open door policy that benefits both the regulator, as well as consumers and agents. To hear the interview via Insurance Journal’s Web site go to Insurance Journal TV.

Topics Legislation Ohio