NAIC to Tout State Regulation to U.S. and Foreign Policymakers

As reported by Insurance Journal, the National Association of Insurance Commissioners (NAIC) is "Protecting the Future" with its new educational initiative in U.S. capital, the European Union capital, and the seat of the Financial Stability Board (FSB) for the G-20. The NAIC initiative will extol "the virtues of the 150-year old state-based insurance regulatory system" in Washington, D.C.; Brussels; and Basel, Switzerland.[1]
“The U.S.’s state-based insurance regulation system has an unmatched track record and can best adapt to meet our future economic and financial challenges,” said Ben Nelson, NAIC chief executive officer. “By ensuring soundness, solvency, stability and competition, state-based insurance regulation does more than make insurance markets work — it protects the future for American consumers, employers and the economy as a whole.[2]
The pro-state insurance regulation is motivated in part by the NAIC's view that "some federal officials and global regulators are seeking unprecedented authority over American insurance markets, including the imposition of bank-centric regulation on insurance companies." [3]
The NAIC, Nelson and its other leaders have been critical of recommendations for an expanded role for the federal government in U.S. insurance regulation, attempts to apply capital requirements suitable for banks to insurance companies, and moves to introduce global capital requirements on insurers.

State regulation advocates are also concerned that the international Financial Stability Board in Basel, Switzerland, could be gaining too much influence in the U.S. when it comes to financial regulation.[4]
Adam Hamm, current NAIC President who is also North Dakota insurance commissioner, explains that "[s]tate insurance regulation works because it's specific to the industry's unique risks and able to reflect state-specific considerations."[5]

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