WASHINGTON, D.C.--Insurers are calling on regulators to ramp up their efforts to advocate U.S. regulatory standards as international associations fashion global standards.
The call to create a stronger U.S. presence was expressed by both property-casualty and life companies during the summer meeting here this week of the Kansas City, Mo.-based National Association of Insurance Commissioners.
"The U.S. is the most sophisticated insurance market in the world," said Dave Snyder, a representative with the American Insurance Association. "As such, we have a pretty good way of doing things. The NAIC is not as strong an advocate as it needs to be for the U.S. system, which should become an international standard. It needs to be more aggressively defended than what we have seen so far."
The most recent cause for concern was the adoption of an accounting paper by the International Association of Insurance Supervisors in Zurich. In May, the IAIS technical committee published its second set of observations addressing the valuation of insurance liabilities for general purpose financial reporting. The industry contends the IAIS proposals are inconsistent with U.S. solvency and statutory accounting.
Steve Broadie, vice president, financial legislation and regulation with the Property Casualty Insurers Association of America based in Des Plaines, Ill., representing a group of insurance associations before the IAIS, said such rules underscore the need for strong advocation of U.S. accounting standards.
In a session of the International Insurance Relations "G" Committee, NAIC President Alessandro Iuppa, also chairman of the IAIS executive committee, said the NAIC was vigorously making the case for U.S. standards in its discussions with international regulatory bodies.
One difficulty Mr. Snyder foresees is the authority an individual state regulator has representing the U.S. on international matters when other countries are represented by national regulators.
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