Regulation/Legislation

Reasons for supporting state regulation of insurance voiced by some governors don't withstand detailed scrutiny, officials at several Washington conservative think tanks said in a letter to congressional leaders.

A spokesman for the Florida Office of Insurance Regulation said that many insurers have expressed interested in providing coverage for policyholders with suspended home insurer Coral Insurance Co.

The G-20 meeting generated a number of proposals that if implemented would have a strong benefit for U.S. insurers, according to officials at an industry trade group.

In a report last week, the General Accounting Office advised Treasury to withhold $30 billion from American International Group until the company agrees to renegotiate contracts with employees and final counterparties.

An insurance executives' think tank, in advance of the London G-20 meeting last week, wrote to finance leaders advising them that any regulatory moves to fix the economic crisis should recognize the difference between banks and insurers.

A unit of the European Union reached informal agreement last week on Solvency II, a broad framework to enhance insurer capital requirements and supervision. The action drew a positive response with reservations from some insurance segments.