He says Benmosche “accepts his fate”–as a large holding company explaining why there are advantages for AIG being designated as SIFI–but having federal oversight “is a real pain.”

“It makes your life very difficult; you have less flexibility; you can't turn on a dime—no matter how good you are,” says Berkley. “It makes more cumbersome demands on the business. It takes away a lot of risk, but makes it harder to run.”

He says Benmosche's job will be more difficult and complex with another layer of regulation, but “with luck, over a period of a few years,” there may be less regulation. However, banking regulators are “persistent” and see risk in a different way from insurers. He hopes eventually insurers will get through to bank regulators, that under the law insurance companies are different.

“You can watch what we do, but we are not the same as banks,” says Berkley, adding that he believes the designation puts these carriers under a competitive disadvantage.

Benmosche points out that AIG has improved substantially over where it was in 2008 when it required a government bailout and it has met and surpassed the government's financial stress tests. However, if there is a disadvantage it will be for AIG's shareholders should regulators require the company to put up more capital.

He says the carrier is planning overseas expansion, primarily in Asia, where a new generation of buyers is coming to appreciate the financial securities offered by accident and health, and life insurance.

“It's a huge opportunity and market,” says Benmosche.

The third panelist, Gregory C. Case, president and CEO of insurance broker Aon plc, says insurers want regulation because they want to “get it right,” but it cannot be the same for banks and insurers. If they are, he asks, will the added demands for capital then increase the cost of insurance? It is a question that cuts across the industry not only in the U.S. but on an international scale as regulators look to get these issues “proportionally right,” he says.

Berkley says he worries about over regulation of business, because, “if you have regulation that is so strong that no one can fail, you don't have any real competition. I think that is the real problem.”