McCarty raises concerns on coordination and transparency
WASHINGTON, D.C. – May 7, 2015 – (RealEstateRama) — Kevin M. McCarty, Florida Insurance Commissioner and past NAIC president, testified before Congress today on behalf of the National Association of Insurance Commissioners (NAIC). The hearing, titled “The State of the Insurance Industry and Insurance Regulation,” was held by the U.S. Senate Committee on Banking, Housing, and Urban Affairs. His testimony focused on the need to coordinate insurance policy to protect American policyholders and benefit U.S. markets and companies.
“While we are committed to collaborating with our federal and foreign counterparts where we can, we have a responsibility to the U.S. insurance sector,” McCarty said. “We will not implement any international standard that is inconsistent with our time-tested solvency regime that puts policyholders first.”
McCarty’s testimony specifically addressed concerns regarding domestic and global capital rules for insurers. “Capital requirements are important,” McCarty said, “but if imposed incorrectly or without regard to difference in products and institutions, they can be onerous to companies, harmful to policyholders and may even encourage new risk-taking in the insurance industry.”
McCarty will return to Capitol Hill on Wednesday, April 29 to testify before the U.S. House Financial Services Subcommittee on Housing and Insurance. That hearing will focus on international regulatory standard-setting. McCarty’s remarks will cover how U.S. regulators are working internationally to strengthen open and competitive insurance markets globally, while protecting U.S. interests.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.