In the Sept. 11 edition of National Underwriter, Joseph J. Beneducci, president and chief operating officer of Firemans Fund Insurance Company, argues that optional federal charters will reinvigorate the property-casualty insurance industry. Click here for the full story, and then come back to my blog to comment.
I, frankly, have not made up my mind, but my inclination is to stick with state regulation, period. After all, the federal government certainly has dropped the ball on regulation in the past. And while there are obvious advantages for national and international carriers to having a federal charter, it also opens the possibility of answering to a crusading federal czar with enormous power over the industry--as I mentioned in my blog entry of Sept. 5.
Supporters of federal regulation should also consider the fact that while a Federal Bureau of Insurance (another FBI!) will no doubt start out modestly when it is still on the drawing board, history indicates that it will become a bloated bureaucracy before too long.
Still, I understand the frustration that carriers and multi-state brokers feel in dealing with multiple regulators, and can appreciate the lure of the utopian notion of a single master. I'm just not yet convinced this is the wisest move to make.
Mr. Beneducci is convinced that it is the best course, and makes a strong case. Check out his "Final Say" column and tell me what you think.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
