American Property Casualty Insurance Association
  • Staff Contact: Eileen Gilligan     
    • Related Information Related Information Printer-Friendly Printer-Friendly PDF Export PDF Export

 

 

Contact:

Eileen Gilligan

Phone:

202-639-0497

Email:

Eileen.Gilligan@pciaa.net

 

 

FOR RELEASE ON RECEIPT

March 11, 2014

PCI Applauds Senate Hearing on Capital Regulations for Insurers

 

WASHINGTON – The Property Casualty Insurers Association of America (PCI) issued the following statement today applauding the Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection hearing “Finding the Right Capital Regulations for Insurers.”

“PCI strongly supports efforts by Congress to ensure that any capital standards for insurance holding companies with depository institution affiliates be appropriately tailored to insurance,” said Nat Wienecke, PCI’s senior vice president, federal government relations.

“Forcing bank capital standards onto an insurance company makes no more sense than imposing standards designed for auto insurers onto banks. They are fundamentally different businesses, with different risks, leveraging, and regulatory focus on insurance legal entities versus banking source of strength,” continued Wienecke.

Senator Susan Collins (R-ME) has stated in writing to the federal banking regulators that while writing section 171 of the Dodd-Frank Act, “it was not Congress’ intent that federal regulators supplant prudential state-based insurance regulation with a bank-centric capital regime.”

In addition to providing policyholders protection from property and casualty related risks, a number of PCI members also own community banks or other relatively small depository institutions which provide basic services. The potential burdens under the Dodd-Frank Act are causing many PCI members to quit the banking industry. “These PCI members provide important community and customer services and insurers in some cases can be a financial anchor for depository institutions. But until Congress can rectify the situation, potential regulatory costs and challenges impair their competitiveness and make them decreasingly tenable,” said Wienecke.

PCI submitted testimony to the Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection Committee. The testimony is attached.

 “We commend Chairman Brown and Ranking Member Toomey and Members of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection for holding today’s hearing. PCI strongly urges Congress to act quickly and clarify the Federal Reserve requirement to develop consolidated requirements that draw on the standards already implement be state insurance regulators and reflect the insurance business model,” concluded Wienecke.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

###

  • Related Information