It is unnecessary for property and casualty insurance companies to be overseen by the Financial Stability Oversight Council (FSOC) as potentially "systemically significant," and Congress should move to take away that authority, a P&C trade group contends.
In a letter to Congress, officials of the National Association of Mutual Insurance Companies (NAMIC) say passage of three bills sought by state regulators that would severely roll back federal authority to oversee insurance companies should only be the start of legislative action to curb federal oversight of insurance companies.
NAMIC President/CEO Charles Chamness signed the letter and sent it in advance of a Nov. 16 hearing by the subcommittee on "Insurance Oversight and Legislative Proposals."
The three bills supported by state regulators would, respectively, revoke the authority of the Federal Insurance Office and the Office of Financial Research within the Treasury to subpoena information from insurance companies; "explicitly and entirely" exclude insurance companies, including mutual insurance holding companies, from the Federal Deposit Insurance Corp.'s "orderly liquidation authority" for troubled large non-banks; and "preclude" the Federal Reserve from establishing higher prudential financial standards to troubled insurance companies it would oversee as ordered by the FSOC.
Chamness says these three legislative proposals to be considered "represent an excellent first step toward bringing much-needed certainty to insurance markets," but stressed the prevention of new and unnecessary regulation of insurers by the FSOC.
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.
