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PCI Issues Statement on IAIS Global Systemically Important Insurers Proposal

Posted on 17 Jan 2013 by Neilson

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PCIThe Property Casualty Insurers Association of America (PCI) on January 14 participated in a discussion with the International Association of Insurance Supervisors (IAIS) Financial Stability Committee on policy measures that would be applied to any insurance company designated as a Global Systemically Important Insurer (G-SIIs). David Snyder, PCI's vice president for international insurance policy made the following comments on the draft measures at the meeting:

"All of the evidence is that the insurance market is sound and competitive despite huge challenges. To maintain this excellent condition, PCI urges further dialogue before the G-SII methodology and policy measures are finalized. There are many issues that need more definition and additional consultation will help avoid unintended negative consequences. For example, clarifying that insurance activities, whether traditional or not, do not pose systemic risk will help to avoid penalizing well managed and well regulated insurers as that will ultimately harm consumers. PCI is committed to continuing to work with IAIS on this important matter."

On Tuesday, January 15, PCI participated in a ComFrame Dialogue discussion with the IAIS Technical Committee regarding confidentiality and valuation issues in the IAIS' project to develop a common framework for supervision of internationally active insurance groups. Steve Broadie, PCI vice president for financial policy, urged the IAIS to add additional protections to ensure that confidential information is not improperly disclosed. "ComFrame calls for many insurer disclosures to supervisors that must be better protected in order to protect the interests of insurers, their policyholders and the public," Broadie said. He also asked the IAIS to require that regulators give immediate notice to insurers when their confidential information is improperly disclosed in order to give the insurer an immediate opportunity to protect its interests.  

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $190 billion in annual premium, 40 percent of the nation's property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 38 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.