The NAIC released its 2014 Annual Report, "State-Based Insurance Regulation: Protecting the Future." The report uses the Protecting the Future theme to illustrate how regulators work together to ensure the success and security of state-based regulation.
NAIC Submits Testimony on FSOC Nonbanks Designations Process
Monica J. Lindeen
NAIC President and Montana Commissioner of Securities and Insurance
The NAIC submitted testimony to the U.S. Senate Committee on Banking, Housing and Urban Affairs. The letter outlined regulators’ concerns with the Financial Stability Council’s (FSOC) process for designating nonbank financial firms as systemically important financial institutions. The NAIC raised concerns regarding FSOC’s understanding of insurance and its regulation, the failure of FSOC to provide an “exit ramp” for designation that would reduce risks to the financial system, and the lack of involvement of state insurance regulators in FSOC deliberations.
Members of the National Association of Insurance Commissioners strongly support the Policyholder Protection Act and we thank Senators David Vitter and Jon Tester and Congressmen Bill Posey and Brad Sherman for introducing this critical bipartisan legislation. This measure clarifies insurance regulators' authority to protect insurance consumers, regardless of a company's organizational structure or financial circumstance. As financial firms become more complex, it is essential that state insurance regulators continue to have the ability to specifically protect insurance-related assets in order to pay claims when they come due.
The NAIC announced plans for coordinating an action plan in response to today’s announcement of the security breach at Premera Blue Cross led by Washington Insurance Commissioner Mike Kreidler. It is estimated that 11 million consumers may be impacted by this cyberattack.
Kevin M. McCarty, NAIC Past-President and Florida Insurance Commissioner highlighted several NAIC priorities at the Networks Financial Institute’s 11th Annual Insurance Public Policy Summit. McCarty’s remarks included updates on key domestic and international issues facing state insurance regulators.