Chicago — The
Today, the organization sent members of Congress and state insurance policymakers a report, written by Nat Shapo, former Illinois Director of Insurance, that analyzes the causes of the nation’s financial crisis and highlights structural and behavioral differences between the property/casualty insurance industry and other types of financial institutions.
The report, “
NAMIC President and CEO Chuck Chamness acknowledges that while the insurance financial regulatory system is not perfect, it has provided a source of comparative stability during the financial crisis.
“NAMIC member companies—with their established record of conservative management and prudent decision-making—know that the state-based system of insurance company solvency regulation has proven to be effective and reliable even as the ongoing financial crisis has exposed weaknesses in the regulatory regimes that govern other financial institutions. As a result, insurance companies today are able to provide their policyholders with needed protection even in a time of terrible strain,” Chamness said in a statement.
The report suggests that creating a federal Office of Insurance Information (OII) to bolster the federal government’s institutional knowledge of insurance markets would be appropriate.
“An OII could help federal policymakers monitor systemic risk throughout the financial services industry by providing a central repository to gather and analyze information already collected by state insurance regulators, such as insurer investment activity, capital adequacy and loss exposure,” the report states.