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PCIAA Commends Nomination of Woodall as Insurance Expert for FSOC

Source: PCIAA

Posted on 27 Jun 2011

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The Property Casualty Insurers Association of America (PCI) applauds President Obama and Treasury Secretary Timothy Geithner for today’s nomination of S. Roy Woodall to serve as the insurance expert on the Financial Stability Oversight Council (FSOC), as created by the Dodd-Frank Act.

"PCI applauds the appointment of Roy Woodall to serve as the insurance expert on the FSOC,” said David Sampson, president and CEO of PCI. “We are pleased that the Department of Treasury has listened to the calls from the insurance sector and congressional leaders from both sides of the aisle to fill this critically important position. Mr. Woodall brings extensive experience in the insurance sector and an understanding of the state insurance regulatory system.”

The FSOC is comprised of the nation’s top financial regulators and will monitor systemic risk in the financial services sectors. Three insurance representatives will sit on the FSOC, including: Missouri Insurance Director John Huff as the representative of National Association of Insurance Commissioners (NAIC) as a non-voting member; Michael McRaith, the new Federal Insurance Office (FIO) director as a non-voting member; and Woodall as a voting member.

“Mr. Woodall will play a very important role on the FSOC as regulators implement the Dodd-Frank Act related to nonbank financial institutions," said Sampson." The Dodd-Frank Act appropriately treats insurance very differently than other financial sectors, and it recognizes the strong consumer protections already provided by the state regulatory and guaranty fund system. Property casualty insurers are not highly leveraged or interconnected and have a fundamentally different business model than banks, a fact that warrants different regulatory treatment."