Whether or not the recent crisis at American International Group and the fear of a meltdown in the U.S. financial services system proves the need for Washington to regulate the insurance industry--or exactly the opposite--depends on whether you're for or against an optional federal charter, a debate between leaders of an insurer group and state lawmaker association revealed.
"The recent turmoil in our economy highlights a number of flaws in financial services regulation, including insurance," according to American Insurance Association President Marc Racicot, whose group strongly supports an OFC.
But George Keiser, a Republican representative in the North Dakota legislature, and secretary of the National Conference of Insurance Legislators, begged to differ, suggesting that the recent troubles on Wall Street--even those involving AIG, an insurer--demonstrates that Washington shouldn't be trusted to impose a "one-size-fits-all" regulatory system on the industry.
The two faced off in a debate today launching The National Underwriter Company's second annual Virtual Conference and Exposition, moderated by NU Editor In Chief Sam Friedman.
To hear the debate first hand, register for the conference free of charge at http://presentations.inxpo.com/Shows/Summit/09-08/Registration/agenda.htm.
To read more about the debate, see NU's Sept. 29 edition, available online at www.propertyandcasualtyinsurancenews.com on Friday afternoon, Sept. 26.
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