Posted on 11 Mar 2009
The U.S. insurance industry should be subject to federal regulation, says Allstate Corp.'s Chief Executive Tom Wilson. Allstate is the the nation's largest publicly traded home and auto insurer.
Wilson told the U.S. Chamber of Commerce today that the insurance industry, which is currently regulated by the states, should be put in a similar pool of regulation as other large financial firms.
“The United States has the most sophisticated capital markets in the world, with the most competitive and innovative financial instruments. Yet our system for regulating them is a Depression-era hodgepodge. We need real regulatory reform, better oversight and greater transparency," said Wilson.
“The financial services sector has the potential to become a real agent for change,” Wilson continued. “As leaders, we have to do more than just talk about restoring confidence. We must re-examine the way risk is shared between government, business and the American people. We need a comprehensive regulatory framework to ensure that middle-income consumers can create more secure economic futures and better manage the financial risks that are a part of everyday life.”
In addition to a comprehensive financial services regulatory framework, Wilson also called for a federal insurance charter to cover the insurance industry. This would allow strong consumer protections and uniform regulation across states that would lower administrative costs and improve access to new and innovative products.