NU Online News Service
|SEATTLE--Looking to avoid a repeat of the problems thatnearly took down American International Group, a regulator saidinsurance commissioners are looking to state legislators to provideauthority to obtain information about a holding company'snon-insurance entities.
|Citing the fall of American International Group, Ann Frohman,director of the Nebraska Department of Insurance, said that whileregulators are not seeking to regulate those non-insurance assets,they do need to be in a position to collect the information andmake some determination if those assets can adversely affect theinsurance entities.
|This would then allow regulators to "have a discussion" aboutthose assets with the holding companies in an effort to avoid theAIG debacle, Director Frohman said.
|Her comments came during the NAIC Summer National Meeting heldhere.
|"You can't stop failure," she said, "but we can catch things andchange the thinking upstream."
|Director Frohman also spoke to the NAIC's planned dealings oninternational issues with a new Federal Insurance Office (FIO),which will be established within the Treasury Department as part offinancial services reform.
|She said working with the FIO would be a positive step becausethe industry needs a single voice on insurance trade issues.
|"We need their assistance; it does make a lot of sense," shesaid. "Our job is to educate [the FIO]."
|NAIC President and West Virginia Insurance Commissioner JaneCline said it is a "proud achievement" that insurance regulationhas been left in the hands of the states in the wake of theDodd-Frank bill. She added, though, that the industry can expect"much more engagement with our colleagues in D.C." with thecreation of the FIO.
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