In testimony before the House Financial Services Committee Federal Reserve Chairman Ben Bernanke seemed receptive to federal regulatory presence in the insurance market.

Bernanke was asked by Rep. Ed Royce (R - Calif.) whether he thought a federal insurance regulator was needed to mitigate systemic risk.

“Well the issue of the option of a federal charter for insurers is a complex one and there are a lot of issues involved, but to cut to the bottom line, I think that it would be a useful idea to create a federal option for insurance companies particularly for large systematically critical insurance companies,” Bernanke said. “And in general holding company-level supervision of systematically important institutions is very important. “

Royce are Rep. Melissa Bean (D.-Ill.) are co-sponsors of the forthcoming National Insurance Consumer Protection and Regulatory Modernization Act, which would create a federal regulator, the Office of National Insurance, tasked with widespread oversight of the insurance industry.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access