Posted on 19 Oct 2009
Insurance industry executives worry about the effect of regulation on their performance over the next few years, but disagree on how financial service regulatory reform should unfold, according to a recent survey.
Increased regulatory intervention was one of the top concerns impeding future company performance, according to a poll of 271 insurance industry executives, performed by KPMG.
While concern grows, a clear solution is lacking among the group.
About a third of respondents (28%) said they support the optional federal charter, a proposal before Congress that would allow insurers to choose to have their products approved either at the federal level for all states or on a state-by-state basis.
A slightly smaller group of executives (25%) want to maintain the current state regulatory system, but say some increase in regulation will be necessary, according to the poll, taken at the KPMG annual Insurance Industry Conference, held in Brooklyn, N.Y., recently.
Another 17% support a mandatory change to a federal insurance regulator, thus eliminating the current state-based insurance regulatory system.
Another 25% do not support any change, and say increased regulation is not needed in the insurance industry.