WASHINGTON – The Property and Casualty Insurers Association of America (PCI) issued the following statement commending the House Financial Services Subcommittee on Housing and Insurance hearing today entitled “The Impact of International Regulatory Standards on the Competiveness.”
“PCI applauds Subcommittee Chairman Luetkemeyer and Ranking Member Cleaver for holding this important hearing and raising concerns about a global capital standard and the federal agencies role in regulating insurance,” said Nat Wienecke, PCI’s senior vice president, federal government relations.
“The U.S. state based insurance regulatory system is robust and well-positioned to meet the needs of the nations’ insurance marketplace. A one-size-fits-all global capital standard is not appropriate for insurers. Insurers are fundamentally different from banks and insurance markets are vastly different around the world,” continued Wienecke. “To protect U.S. consumers, it is also important to avoid moving forward on international insurance agreements while our domestic regulators work out how to implement the numerous Dodd-Frank Act requirements. We need to get it right at home first. Then, after getting it right, policymakers should defend our system against pressures to establish a one-size-fits-all global standard.”
Wienecke also commended Representative Sean Duffy (R-WI) for introducing the International Insurance Standards Transparency and Policyholder Protection Act of 2015. “This legislation would protect policyholders and require the U.S. federal representatives that participate in international discussions to represent the interests of the successful state-based insurance system with one voice. PCI applauds Representative Duffy’s support for the state-based insurance regulatory system and looks forward to working with him and moving this legislation forward,” concluded Wienecke.
Wienecke also praised coauthors the report coauthored by Therese M. Vaughan and Mark A. Calabria, entitled “International Developments in the Insurance Sector: the Road to Financial Instability?” The report, released earlier this week, “highlights a bank-centric, global capital standard is not appropriate for insurers and could raise costs for American consumers and destabilize U.S. insurance markets.”
Vaughan and Calabria’s report can be found here.