Indications that future regulation will focus on companies that present systemic risk is drawing praise from the Property Casualty Insurers Association of America (PCI).
Specifically, the association hailed a proposal by the New Democrat Coalition, a group of 67 legislators, to create a systemic risk regulator to monitor the biggest financial services companies.
“We are pleased to see that the number one item addressed in the New Democrat Coalition’s plan is systemic risk,” says David Sampson, PCI’s president and CEO. “PCI believes it makes more sense to regulate based on interconnectedness rather than on company size or market share. Systemic risk regulation of a company that poses no systemic risk would serve no purpose. That is why we agree that Congress needs to first address systemic risk, before assessing other separate deficiencies highlighted by the current crisis and returning to Congress’ long-term consideration of regulatory reform.”
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