PCI Says New OFC Proposal Misses Mark

The head of the Des Plaines, Ill.-based Property Casualty Insurers Association of America (PCI) says the proposed National Insurance Consumer Protection and Regulatory Modernization Act does not address the interrelated risks that threaten the health of insurance companies.

David Sampson, PCI’s president and CEO, contends that the nation’s lawmakers should fix a broken credit and banking system before contemplating an rewrite of the rules that insurance companies abide by.

“Systemic risk is clearly the crucial issue that Congress should tackle first,” Sampson says. “Before overhauling the entire financial services regulatory system, it is important to first determine what sectors of the marketplace actually create systemic risk and fix the dangerous gaps in federal oversight. The critical need right now, which is crucial to the future of our economy, is to establish a viable system for systemic risk regulation before refocusing on a decades-old debate over federal insurance regulation.”