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Fin. Services Reform: Insurers Should Dodge 'Systemic Risk' Fee

While American International Group is the only property and casualty insurer expected to be deemed "systemically important" under financial services reform, that designation is expected to diminish over time, Moody's said in a recent report.

By Chad Hemenway | Updated on August 10, 2010

NU Online News Service, Aug. 11, 3:16 p.m. EDT

While American International Group is the only property and casualty insurer expected to be deemed “systemically important” under financial services reform, that designation is expected to diminish over time, Moody’s said in a recent report.

In a separate report, Standard & Poor’s said the Dodd-Frank Wall Street Reform Act is not expected to affect insurers’ credit quality, except for the provision that would assess a fee to insurers designated as systemic risks. The fee, which had not previously existed for large insurance companies or nonbank financial firms, is designed to help the government pay for its new authority to unwind large, distressed firms.

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