Posted on 16 Jun 09
The Property/Casualty insurance industry has remained strong and solvent through the current economic crisis and poses no systemic risk to the nation’s economy. That’s what the National Association of Mutual Insurance Companies (NAMIC) told members of a congressional subcommittee on Tuesday.
The House Financial Services’ Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing on systemic risk and insurance on Tuesday – before the Obama administration releases its plan for addressing the problems in the financial services sector that led to the current economic turmoil. NAMIC was invited to represent its 1,400 companies in the Property/Casualty insurance industry that serve consumers on main streets throughout the nation.
“Many in the financial services sector have faltered because of the economic downturn, but the Property/Casualty industry has remained comparatively strong and continues to fulfill promises to its policyholders,” said Jimi Grande, NAMIC’s vice president for federal and political affairs. “As members of Congress prepare legislation to address systemic risk, fill regulatory gaps, and better protect consumers, we encourage them to keep their reform package focused on correcting the problems that led our country into this challenging time and not overreach and harm those operating on main street.”
The hearing may be the only one in the House of Representatives before its members craft legislation to prevent a future financial crisis, Grande pointed out. “As members of Congress consider whether insurance should be part of systemic risk regulation, it’s important they distinguish Property/Casualty insurance companies as very different from others in the financial services sector.”