American Insurance Association issued the following announcement on Sept. 13.
David A. Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), issued the following statement ahead of Thursday’s Senate Committee on Banking, Housing, and Urban Affairs hearing, entitled “Developments in Global Insurance Regulatory and Supervisory Forums.”
The International Association of Insurance Supervisors (IAIS), against objections by Team USA (representatives from the National Association of Insurance Commissioners, the Federal Reserve Board, and the Federal Insurance Office of the U.S. Department of Treasury), is scheduled to adopt a proposed global insurance capital standard (ICS) at its annual conference in mid-November. In its current form, the ICS is unsuitable for the U.S. regulatory system and would have a harmful impact on U.S. insurance companies, consumers, and the marketplace. The ICS would be instituted for a five year monitoring period and is expected to be adopted by IAIS member countries within their respective jurisdictions.
“Although the existing capital standards of the U.S. insurance regulatory system have served the U.S. well, the IAIS continues to demand global approval of its proposed ICS, which is unworkable in the U.S. insurance regulatory system and would undermine market growth and stability. It is imperative that alternatives, such as the aggregation-based group capital assessment that U.S. regulators have developed, be recognized as a better fit for the U.S. insurance market,” said Sampson.
“APCIA appreciates the efforts of Team USA to speak with one voice and represent U.S. interests. We also commend the Senate Committee on Banking, Housing, and Urban Affairs for underscoring the importance of this effort. We call on Congress to continue its strong support for Team USA to remain united and committed to working closely together to demand a better outcome – one that will work for the U.S. marketplace, and will recognize and accept the U.S. regulatory system.”
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