Congressmen Have Doubts On Ability Of NAIC To Achieve Reform
Despite its best efforts, the National Association of Insurance Commissioners may not be able to achieve the regulatory reforms the insurance industry needs, said the chairman of the House Financial Services Committee.
“I am not here to blame the NAIC for a lack of reforms,” Rep. Mike Oxley, R-Ohio, said during a hearing on regulatory reform. “To a large degree, their hands are tied.”
While the NAIC can approve initiative after initiative, Oxley said, state legislatures must act on them. “Unfortunately, it is becoming increasingly apparent that the NAIC may be facing an insurmountable task,” he said.
While he hopes that the NAIC and state legislators will be able to achieve reform, Oxley said his committee will not sit idly by. “We will keep building on our reform efforts and we will not let up until consumers receive the most effective and competitive marketplace that can be created,” he said.
Rep. Paul Kanjorski, D-Pa., the Ranking Democrat on the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, agreed.
“No matter what side one takes in this long-standing debate, it has become clear to me that this is no longer a question of whether we should reform insurance regulation in the United States,” he said. “Instead, it has become a question of how we should reform insurance regulation.”