Posted on 06 Apr 2009
Members of the National Association of Insurance Commissioners (NAIC) stressed the importance of a global exchange of ideas and collaboration among the world's financial regulators during the recent Transatlantic Insurance Dialogue Symposium at the U.S. Chamber of Commerce.
The meeting brought together policymakers and industry representatives from Europe and the U.S., and explored key developments critical to modernizing insurance regulation on both sides of the Atlantic.
“The most important lesson to be learned from the current international economic crisis,” said New Jersey Banking and Insurance Commissioner Steven M. Goldman, who also chairs the NAIC International Insurance Relations Committee, “is how important it is that we have an open dialogue with regulators from around the world to develop common international regulatory standards through the sharing of ideas and best practices.”
Goldman also spoke about the success of U.S. insurance regulatory practices that have been crafted over the past 150 years. In addition, he described how the states work together through the NAIC in support of widespread uniformity in state-based regulatory oversight.
Illinois Insurance Director Michael T. McRaith — who represents the NAIC on the cross-sectoral Joint Forum of the Basel Committee on Banking Supervision, the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS) — discussed the need for U.S. regulatory reform to address regulatory weaknesses revealed by the current market stress.
“The NAIC agrees that federal regulatory structures need to be updated to better identify and manage systemic risk in the broader financial system,” McRaith said. “But we believe that any such proposals should preserve the state-based insurance regulatory system and its proven track record of strong solvency and consumer protections.”
NAIC President and New Hampshire Insurance Commissioner Roger Sevigny welcomed the opportunity to meet with European policymakers, regulators and industry representatives.
“These exchanges allow us to hear about the progress on solvency reforms in Europe, as we discuss ways to enhance transatlantic relations and provide leadership on regulatory solutions to the challenges of today’s marketplace,” Sevigny said.