An array of factors has triggered the current financial crisis. However, there is no compelling proof to indicate that P&C insurers did anything to contribute to the mess, says a recent report issued by National Association of Mutual Insurance Companies (NAMIC).
Written by former Illinois Director of Insurance Nat Shapo, the 15-page report analyzes the causes of the nation's financial crisis and cautions Congress to avoid disturbing the financial markets and regulatory systems that have served consumers well. Specifically, NAMIC cites a tradition of prudent management and state-based solvency regulation that has been advantageous to P&C insurers and their policyholders alike.
“NAMIC member companies — with their established record of conservative management and prudent decision making — know that the state-based system of insurance company solvency regulation has proven to be effective and reliable even as the ongoing financial crisis has exposed weaknesses in the regulatory regimes that govern other financial institutions,” said Chuck Chamness, NAMIC president/CEO. “As a result, insurance companies today are able to provide their policyholders with needed protection even in a time of terrible strain. While not perfect, the insurance financial regulatory system has provided a source of comparative stability during the financial crisis.”
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