As if it isn't easy enough to read the signposts that have been cropping up in the news media, the latest announcement coming out of the NAIC makes things pretty clear: At an industry tele-press conference yesterday, incoming President Terry Vaughan announced that the association was moving its headquarters from Kansas City to Washington, D.C.
The move comes in direct response to demands from Congress during what Vaughan called "a historic time for regulation" of property-casualty insurance and financial services regulation.
The move will essentially create a Center for Insurance Information operating out of the NAIC's 16-person D.C. office. The association will maintain its staff of 377 in K.C. and 48 in New York.
Although Vaughan declined to comment specifically on the recent findings of the GAO report — which implied that Congressional consideration of an optional federal charter could impact the current state regulatory system — she did say it was a "balanced report that made some good comments and identified issues."
The NAIC's strategy reflects the reality that Capitol Hill will continue to scrutinize our industry this year and beyond. Other signs of the times: PCI contracting with D.C. government relations firm Quinn Gillespie to advance its issues in Congress, and Zurich/Farmers beefing up its clout with the addition of former AIG government affairs director Rich Merski to its federal affairs team.
Not a moment too late, evidently. This from NUP:
An influential senator said today that federal lawmakers need to consider U.S. regulation of the insurance industry, which now has only state oversight.
Sen. Richard Shelby, R-Ala., made his comments during a Senate Banking Committee hearing citing the debacle at American International Group, which has required billions in government bailout money as a reason to consider federal regulation of the sector.
It's happening, folks, whether we want it or not. The smart players are the ones positioning themselves to help craft an agreeable solution instead of those who close their eyes and let themselves be steamrolled by the results.
Want to take a poll about insurance regulation? Visit our Web site.
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