NU Online News Service, Oct. 20, 3:53 p.m.EDT

ORLANDO, Fla.–Chief executives be advised thatregulators are looking for you, but just for a friendly chat.

Yesterday, Arkansas Insurance Commissioner Jay Bradford askedassociation representatives if they would speak to company chiefexecutives about attending one of the National Association ofInsurance Commissioner meetings to discuss the state of affairsbetween regulators and insurers.

Commissioner Bradford said that they would not be coming beforethe NAIC's Industry Liaison Committee for a hearing, but instead"to find some common ground so we can work together."

His invitation came during the association's summer meeting herein Orlando.

Industry association representatives from the property andcasualty and life and health sides said they felt some would beamicable to such a request, though they might not be able to getchief executive officers to come. They might stand a better chanceof getting chief financial officers to attend.

David F. Snyder, vice president and associate general counsel,public policy, for the American Insurance Association, said theindustry is willing to "explore any ideas that come forward" andnoted that there have been cases in the past where heads fromactuary firms met with regulators to discuss ideas.

Deidre Manna, vice president, industry, regulatory and politicalaffairs with the Property Casualty Insurers Association of America,said that it would help to gain their attendance if there werespecific issues the committee sought to discuss.

There was no date set for when this discussion might occur.

Turning to another matter, insurance industry associationrepresentatives said they planned to file formal comments with theFinancial Stability Oversight Council–responsible for examining"systemic risk" within the financial services industry–as it beginsto meet to implement the Dodd-Frank Act, the new financial reformlaw.

Ms. Manna echoed the comments of other associationrepresentatives that the insurance industry does not pose asystemic risk, underscored by the performance of the industryduring the recent economic crisis. She noted that insurers survivedthe crisis virtually unscathed and did not a pose a threat to theeconomy.

She also credited the financial regulation of the industry andthe strict capital requirements insurers face for theirperformance.

"Insurers are walled off from the economy, and the failure ofone insurer does not spread to others," she said, adding that thestate guaranty system also contributes to institutionalstability.

On another subject, Mr. Snyder presented a review on the healthof the insurance industry. He noted that overall, insurers aredoing very well, despite the drop in premium rates, thanks in nosmall part to declines in losses. He said the decline in losses wasmore than an accident of fate, and credited insurers' work in riskmanagement, improvements in regulation and legislation, plus otherfactors for the carrier's performance.

To see the industry improve even more going forward, Mr. Snydersaid there needs to be more modernization of rate and form andstreamlining of commercial lines.

These changes, he said, would help the economy by allowingcommercial insurance customers rapid access to insurance and makingthe industry globally competitive.

"We have a good story here," Mr. Snyder remarked.