Although Insurance Regulation Remains a Top Concern of Industry, Federal Rule-Making Progress is Slow

A heightened focus on insurance regulation is a top concern for insurance executives, but deadlines for federal rule-making continue to pass with only slow progress.
The Insurance Journal is reporting that a "heightened focus on insurance regulation as well as exposures related to reputational risk are top concerns for insurance executives today," according to "a survey conducted by Lloyd's at the recent annual Risk and Insurance Management (RIMS) conference" held in Philadelphia.[1]

Excessive regulation is a pressing concern of business leaders globally.
The 2011 Risk Index, another study by Lloyd's that is a survey of 500 executives across various countries in different industries, reflects that excessive regulation and reputational risk are among the top ten most pressing concerns of business executives, generally.[2]
The 2011 Risk Index found that losing customers and struggling to find talented workers are the top two risks facing business leaders across the world. These top two concerns were followed by concerns about reputational risk; currency fluctuation; changing legislation; cost and availability of credit; price of material inputs; inflation; corporate liability, and excessively strict regulation, which rounded out the top 10. Rapid technological changes and cyber attacks were 11th and 12th. At the bottom of the 2011 Risk Index list were windstorms – hurricanes, typhoons and cyclones; drought; threats to biodiversity; impact of space weather (e.g. solar flares), and volcanic eruptions (ash clouds].[3]
Meanwhile, Elizabeth Fiesta at LifeHealthPro is reporting on the slow pace that the federal government is taking with respect to issuing final rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act.[4]
As of May 1, 2012, a total of 221 Dodd-Frank rule making requirement deadlines have passed. Of these 221 passed deadlines, 148 or 67% have missed their deadlines, according to a new report from Davis Polk & Wardwell LLP.

Almost one-third or 73 requirements have been met with finalized rules, according to the report, which goes out monthly as the Davis Polk Dodd-Frank Progress Report. It is based on empirical data. In addition, 108 or 27.1% of the 398 total Dodd-Frank required rule makings have been finalized, Davis Polk states.

This includes all agencies, from bank regulators to the Securities and Exchange Commission and the Commodities Futures Trading Commission. There are still 144 rule making requirements that have not yet been proposed, Davis Polk notes. There are actually two other reports besides the high profile “FIO Report” required under the Dodd-Frank Act which are overdue to Congress just from the FIO itself. [5]

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