PCI Forms Unit To Deal With Congress Regulatory Action

The chairman of the Property Casualty Insurers Association of America (PCI) said the group has formed a Financial Services Regulatory Reform Committee as part of its effort to avert federal regulation that is "duplicative and unnecessary."

John Blackburn, PCI chairman and chief executive officer of COUNTRY Financial, said the PCI board authorized the formation of the committee at its October meeting.

"We are experiencing a 'once in a lifetime' economic crisis," Mr. Blackburn said, "and the terms of debate regarding the regulatory architecture for this new world has fundamentally shifted. The full fallout from this crisis is unclear, but one thing is certain: the property-casualty industry must be strategically engaged in the upcoming debate. Our members have been clear that PCI must have a seat at the table and should constructively engage to help frame the options for Congress."

PCI CEO and President David Sampson warned at last month's meeting that insurers with the new Congress will face the most regulatory activity since the New Deal administration of President Franklin Delano Roosevelt in the 1930s.

"The Board Committee on Financial Services Regulatory Reform that I am appointing reflects the breadth and diversity of our membership and will be guided by PCI's Principles of Good Regulation previously approved by the board," Mr. Blackburn added.

He said the committee will work with staff to develop and respond to proposals that Congress and the next administration will consider in response to the ongoing financial crisis.

"These proposals are already being discussed in Congress and developments will likely come fast and furious. The newly formed Board Committee will enable PCI to be nimble and agile in guiding and empowering our policy and advocacy staff to engage," Mr. Blackburn said in a statement.

The committee, he said, will be working to educate Congress and the new administration on numerous insurance-specific proposals to help guide their reform approach.

PCI said the committee will provide continuous updates and information to the entire PCI board on comprehensive reform developments, issues and progress.

PCI said it "will work to stop duplicative and unnecessary federal regulation. We will urge lawmakers to focus their reform efforts on good principles of regulation, which, consistently applied, would: enhance solvency protection for policyholders; promote competition, innovation and product availability; support consumer choice; protect consumers against fraud and deception; avoid needless government intervention; and minimize economic costs."

PCI is composed of more than 1,000 member companies.