Illinois Insurance Director Michael McRaith was appointed as the first director of the Federal Insurance Office, a move that drew praise from insurance industry members.

Treasury Secretary Tim Geithner announced McRaith's appointment at a March 17 meeting of the Financial Services Oversight Council. The FIO post was created under the Dodd-Frank financial services reform law.

In addition to serving as Illinois' top insurance regulator, McRaith is also currently secretary/treasurer of the National Association of Insurance Commissioners (NAIC).

Earlier this month, NU was the first to report that Mr. McRaith was expected to be named to the post.

As his official appointment was announced, McRaith informed his staff that he would remain at the Illinois department through the end of May. "I have been offered, and accepted, the position of director of the Federal Insurance Office in the U.S. Dept. of Treasury," he wrote. "I will be working with you through at least the end of May, however, and look forward to communicating more personally before then."

Insurance industry officials issued supportive statements regarding McRaith's appointment. Susan Voss, president of the NAIC, says, "The selection of Michael McRaith as the director of the FIO is certainly good news; however, his departure from the regulatory ranks feels like a loss."

She adds: "As a leader within the NAIC, Mike is a thoughtful advocate for consumers and understands the insurance marketplace. His regulatory experience and ability to balance national coordination of state-specific regulation will prove to be of great benefit to the FIO."

Charles Chamness, president and CEO of the National Association of Mutual Insurance Companies, says, "Mr. McRaith brings a wealth of knowledge and experience with him to Washington as he transitions from a regulatory role to that of the director of the FIO."

Chamness says that as "both a state regulator and an officer of the National Association of Insurance Commissioners, Mr. McRaith knows that state insurance departments and the NAIC have an enormous amount of data to draw from, and he knows where to find it."

David Sampson, president and CEO of the Property Casualty Insurers Association of America, says his association is "pleased that the Department of Treasury has listened to the calls from the insurance sector and congressional leaders from both sides of the aisle to fill this critically important position. Mr. McRaith brings extensive experience in the insurance sector and a deep understanding of the state insurance regulatory system."

Leigh Ann Pusey, president and CEO of the American Insurance Association, says that as director of the FIO, "it will be vitally important for [McRaith] to bring his expertise to bear in helping assure that the U.S. and global insurance regulatory systems are both effective and efficient and support vibrant and competitive private insurance markets."

Eli Lehrer, vice president of Washington, D.C. operations for The Heartland Institute and national director of its Center on Finance, Insurance, and Real Estate, also praised the administration's appointment of McRaith.

"Michael McRaith has been a strong presence at the NAIC and in testimony before Congress. He is smart, competent and up to the job before him," Lehrer says.

"He has presided over one of the country's better insurance regulatory systems and does a good job," he adds.

Frank Nutter, president of the Reinsurance Association of America, says, "As director of the Illinois Insurance Department, and in his many roles at the NAIC, Mr. McRaith has demonstrated a deep understanding of the global nature of reinsurance, and we appreciate his leadership in building support for modernizing reinsurance regulation in the U.S."

Howard Mills, director and chief advisor of Deloitte's insurance industry group and former New York State insurance superintendent, says: "Mike understands the state regulatory system, the insurance industry, and has the reputation of being an extremely competent and fair regulator. This is great news, not only for Mike, but for the industry."

The job will pay between $119,554 and $179,700 a year.

Special Reports /

McRaith Appointed FIO Director; Industry Approves

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