Spitzer: How Can We Reform This Culture?

“How has the culture of favoritism and payoffs distorted their basic fiduciary duty to serve the customer?” Spitzer asked the subcommittee. “How can we take steps to reform this culture by requiring appropriate disclosure to ensure the markets are operating properly?”

Spitzer said he supports state regulation of insurance.

“Nonetheless, I do believe there is a role for the federal government, especially in the areas of offshore capitalization and investment by insurance companies,” Spitzer said.

At a minimum, Spitzer said, “federal involvement may be necessary to assure some basic standards of accountability on the part of insurance professionals.”