Loading...

2012 Update: U.S. Insurance Regulators Increase International Focus

704 views

Loading...

Loading...

Transcript

The interactive transcript could not be loaded.

Loading...

Loading...

Rating is available when the video has been rented.
This feature is not available right now. Please try again later.
Published on Mar 3, 2012

Hello, I'm 2012 NAIC President and Florida Insurance Commissioner Kevin McCarty. There is no question that today's insurance marketplace consists of companies and institutions around the world facing a tremendous variety of environmental, governmental and economic impacts. Ultimately, these impacts are felt right here at home in the U.S. In particular, regulators and policymakers are examining instances where varying regulatory approaches can converge to promote understanding among regulators and more effective cross-border business. U.S. insurance regulators, working through the NAIC, have stepped up our involvement and profile internationally. We have redoubled our efforts to engage our international counterparts to increase cooperation and harmonize regulatory outcomes, and we now have a federal partner, the Federal Insurance Office, in this effort. An example of this increased focus is our leadership and participation in technical exchanges and training programs. For example, in 2011 regulators from the U.S. and Europe met in Washington, D.C., Frankfurt and Brussels to discuss solvency modernization, group supervision and Europe's Solvency II equivalency process. In addition, this past year U.S. regulators led seminars and engaged in technical exchanges with counterparts in Latin America and Asia. Last year the NAIC also welcomed 26 regulators from around the world as part of its International Fellows program -- bringing total participation to more than 150 regulators since the program began in 2004. The Fellows program introduces regulators from around the world to fundamental U.S. regulatory practices. This opportunity to work side-by-side not only opens our window to the world, but also strengthens our working relationships with foreign regulators. 2011 saw U.S. regulators analyzing international developments to determine their relevance for NAIC's Solvency Modernization Initiative -- or SMI. The SMI is a critical self-examination launched in 2008 and not in response to a solvency proposal. It is to ensure the U.S. regulatory system is keeping up with rapid changes in the marketplace by taking stock of global best practices. It aims at improving our system so companies can continue to innovate, while remaining financially secure and able to meet their promises to customers. The final report, anticipated at the end of 2012, will include a review of international developments regarding insurance and banking supervision, in addition to international accounting standards. Through this initiative, we will examine developments and evaluate ways to strengthen our own system. We regulate companies that operate around the world, so we must engage with our international counterparts at the IAIS. In addition, we encourage cooperative efforts such as supervisory colleges to ensure that the interests of U.S. consumers are protected.
A great example of this is occurring today as Europe looks to adopt its new regulatory supervisory proposal called Solvency II. Solvency II was designed for Europe's unique history and culture, its legal framework, and its governments. Similarly our regulatory reform is reflective of our history and culture, government and legal framework. We look forward to working with our EU colleagues to ensure a mutual understanding and recognition of the different approaches to solvency protection while enhancing transatlantic commerce. Despite obvious differences in our approaches, the ability of our U.S. system to protect consumers and provide for stable and competitive markets has been tested and proven. The long-term objective of global regulatory convergence should be measured and achieved using an outcomes-based approach that protects consumers and promotes stability. Here in the U.S., we have a time-tested solvency framework that performed well in the last financial crisis. And we continue to make improvements to protect our market against any possible future crisis. An equivalence determination should focus on objectives of regulation and must respect performance, as well as contemplate different legal and regulatory systems already in place. While the way we weathered the recent financial crisis is a testament to a sound and solid regulatory foundation, as evidenced by the SMI and our recurring dialogues with our international counterparts, we are receptive to any reasonable dialogue on measures to strengthen the global marketplace without compromising the quality measures already in place. We also applaud the engagement of the Federal Insurance Office in this process. A state-federal partnership is critically important to ensure that the strengths of our regulatory system are reinforced and our insurance market remains the world leader.

Comments are disabled for this video.
When autoplay is enabled, a suggested video will automatically play next.

Up next


to add this to Watch Later

Add to

Loading playlists...