American Property Casualty Insurance Association
  • Staff Contact: Jeffrey Brewer     
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Contact:

Jeffrey Brewer

Phone:

847-553-3763

Email:

jeffrey.brewer@pciaa.net

 

 

FOR RELEASE ON RECEIPT

July 14, 2014

PCI Praises NCOIL for Adopting Resolution on International Proposals for Insurer Solvency Regulation and a Global Insurance Capital Standard

 

BOSTON – The Property Casualty Insurers Association of America (PCI) expressed support for the National Conference of Insurance Legislator’s (NCOIL) adoption of a resolution expressing concerns related to international solvency and capital standards and their impact on state-based insurance regulation during NCOIL’s summer meeting July 10-13 in Boston.

The resolution, among other things, calls upon the National Association of Insurance Commissioners (NAIC), the Federal Insurance Office (FIO), and U.S. representatives on the Financial Stability Board (FSB) to oppose (1) any international solvency standards that fail to appropriately accommodate the U.S. system and (2) the Fair Value accounting measurements favored by the International Association of Insurance Supervisors (IAIS).

“NCOIL President and International Issues Task Force Chair Sen. Neil Breslin (NY) and his colleagues recognize the importance of protecting state-based insurance regulation and PCI is pleased that they are urging state legislators and regulators to communicate their concerns regarding the direction of the international dialogue on insurance regulation to U.S. representatives on the Financial Stability Board,” said Frank O’Brien, vice president state government affairs for PCI. “It is essential for state and federal officials embrace a coordinated policy position to keep in check international mission creep as some international bodies attempt to expand their influence beyond their scope of responsibility. There are times when federal positions differ from and are contrary to the positions of state regulators. This lack of a consistent U.S. position has the potential to undermine our domestic regulatory system and the consumer protections that it entails.”

“These actions by the insurance lawmakers of the world’s largest insurance market send a clear message to all U.S. and international decision makers involved in international insurance regulatory discussions.  Any standard to be effective must be arrived at through an open and transparent process that assures full participation by state regulators and lawmakers.  And, any international capital standard must be consistent with state policies and laws,” said PCI’s International Vice President David F. Snyder. 

PCI also praised the activity of the newly formed working groups of the International Issues Task Force which were formed to develop strategies as NCOIL addresses key international issues. PCI is closely following the activities of the Capital Standards Working Group, chaired by Sen. James Seward (NY), and the Coordination & Transparency Working Group, chaired by Sen. Jason Rapert (AR). To promote transparency, which is the hallmark of the U.S. regulatory system, NCOIL is calling for greater openness and due process in international insurance dialogues and urges creation of a meaningful mechanism for state legislators to have input into global discussions.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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