The National Association of Professional Insurance Agents (PIA) is disappointed that the FIO, in its narrative regarding the 2007-2009 financial crisis, does not appear to take into account the report issued by the Government Accountability Office (GAO) on June 27, 2013. The FIO report sails by the GAO's conclusion that the state insurance regulatory system worked well to help mitigate the negative effects of the crisis on the insurance industry. A truly objective report would have referenced the GAO study's conclusions.
In arguing for more uniform regulation, the FIO report cites only one recent example to make its case: AIG. However, we believe it significantly misreads, misinterprets and avoids making the difference between the AIG insurance operations versus the AIG private capital London affiliate under which the originating matter arose. Thus, FIO confuses what actually happened regarding AIG's insurance operations versus its capital investment tradition operations.
The report also appears to give a pass to the regulatory failures admitted by the Office of Thrift Supervision (OTS) involving a non-insurance unit of AIG which generated the initial problems. These failures ultimately led to OTS, then a federal financial instrumentality, being dissolved.
Recommended For You
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
© 2025 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.