NU Online News Service, Nov. 30, 2:54 p.m. EST

The Treasury Department will hold a public hearing Dec. 9 to gain industry views on what it should recommend in an upcoming report on modernizing and improving insurance regulation.

The Treasury announced today that the meeting will be held in its Cash Room in the main Treasury building in downtown Washington, D.C.

It says the conference is designed to bring together state-insurance regulators, federal-government officials, consumer organizations, representatives of the insurance industry and insurance experts “to have a meaningful exchange on potential areas for insurance regulatory reform.”

The National Association of Mutual Insurance Companies (NAMIC) says it supports the Treasury invitation.

Jimi Grande, NAMIC senior vice president of federal and political affairs, says, “All too often in Washington the mandate to study an issue is used as a means to implementing an agenda.”

He says NAMIC appreciates that Mike McRaith, director of the Treasury's new Federal Insurance Office, “is taking a different path, seeking out the perspectives from many different parts of the insurance industry in order to have a meaningful debate on how to improve the regulatory structure.”

The conference is part of Treasury's effort to gather as much input as possible in advance of its mandate under the Dodd-Frank financial services reform law to provide a report to Congress by Jan. 22 on how insurance regulation can be modernized.

The FIO, established under Dodd-Frank Act, is required to “monitor,” but not regulate, all aspects of the insurance industry, including identifying issues contributing to systemic risk.

Primary oversight of insurance companies and their holding companies remains in the hands of state regulators, under the law.

The FIO, which reports to the Treasury secretary, is also required to: monitor the availability and affordability of insurance to traditionally underserved populations; advise the Treasury secretary on major domestic insurance policy issues; and develop and coordinate federal policy on international insurance-regulatory matters.

“[The American Insurance Association] looks forward to sharing its views on modernizing and improving insurance regulation at the upcoming conference at Treasury,” says spokesman Willem O. Rijksen. “The newly created FIO will serve to broaden the federal government's understanding of the critical role of insurance in our nation's financial system. In addition, the FIO will serve as a unified voice for U.S. insurers on international insurance matters. While property-casualty insurers fared generally well during the financial crisis, it is important to identify areas where regulation can be improved to enhance competition and grow private markets.”

Special Reports /

Treasury Seeks Industry Views on Modernizing Insurance Regulation

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