This week a delegation of U.S. regulators from the National Association of Insurance Commissioners (NAIC) will travel to Frankfurt to engage their European counterparts on international regulatory issues. The dialogue is especially timely as the European Union (EU) and the U.S. continue to modernize insurance regulation. The EU is taking steps to implement Solvency II and is working with the U.S. regulators as they harmonize systems internationally.
"Our national system of state regulation is well-tested and oversees the largest, healthiest and most dynamic insurance markets in the world," said Susan E. Voss, NAIC President and Iowa Insurance Commissioner. "In this interconnected financial sector, we have a responsibility to ensure that the regulatory regimes being tested elsewhere won't harm U.S. insurers, which could then negatively impact U.S. consumers."
Together, the U.S. and the EU oversee more than 70 percent of the global insurance market. The U.S.-EU Regulator Dialogue agenda includes discussions on regulatory developments, Solvency II implementation and U.S. equivalence as well as a discussion of potential Globally Systemically Important Financial Institutions (GSIFI). The meeting follows a discussion held in March where more than 30 insurance regulator representatives from the U.S. and EU met in Washington D.C.
"The global financial crisis made it clear to all of us that improved cross-border cooperation and regulatory modernization is important," Voss continued. "We look forward to a constructive dialogue where proposed improvements can be evaluated on an outcomes basis."
The U.S.-EU Regulator Dialogue will be followed by the Conference on Transatlantic Insurance Group Supervision hosted by the International Center for Insurance Regulation, where representatives from the NAIC, the European Commission and the European Insurance and Occupational Pensions Authority (EIOPA) as well as the International Association of Insurance Supervisors (IAIS) will engage in two days of discussions designed to better understand the challenges each faces with regard to international insurance regulation. Voss will keynote the conference and Dr. Therese M. (Terri) Vaughan, NAIC Chief Executive Officer, will moderate a discussion on effective group-wide supervision framework.
Also attending on behalf of the NAIC are NAIC President-Elect and Florida Insurance Commissioner Kevin M. McCarty, Arizona Insurance Director Christina Urias, Connecticut Insurance Commissioner Thomas B. Leonardi, Pennsylvania Insurance Commissioner Michael F. Consedine and Texas Senior Associate Commissioner of Insurance Danny Saenz.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.