Washington – As endeavors to create a federal insurance regulator percolate, state regulators are anxious to defend their turf. This week, New York State Insurance Superintendent Eric Dinallo testified before the U.S. House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises about the states’ ongoing efforts to improve insurance supervision.
“The state-based regulatory regime has been very effective for more than 150 years,” Dinallo told the committee, speaking on behalf of the National Association of Insurance Commissioners. “Insurance oversight has been rigorous, resulting in high regulatory compliance and avoiding the level of insolvencies and market meltdowns we have seen in other sectors of the U.S. financial community. Indeed, our national solvency system has ensured that companies have the wherewithal to pay claims while remaining competitive and profitable.”
Looking forward, Dinallo noted that insurance regulation must continue to stay up-to-date with changes in the industry–including the increasingly global nature of the insurance marketplace. He reiterated that state insurance regulators are actively developing proposals to modernize the state-based regulatory framework.
Specifically, Dinallo said any option adopted should include enforceable uniform standards in targeted areas of insurance regulation, and that any entity created to implement reforms or uniform standards should be developed and implemented by state regulators.
“As the insurance industry has grown, the state regulatory community has adapted,” Dinallo testified. “We have responded to this dynamic environment through increased uniformity, interstate collaboration, leveraging of technology and enhanced operational efficiencies.”
Source: National Association of Insurance Commissioners
