The current 50-state system for regulating the U.S. life reinsurance industry needs to be replaced.
David Gates, general counsel at Generali USA Life Reassurance Company, Kansas City, Mo., made that argument here Wednesday during a hearing of the capital markets subcommittee of the U.S. House Financial Services Committee.
The subcommittee convened the hearing to look at H.R. 5637, a bill that would create a uniform regulatory system for surplus lines insurance and reinsurance.
Most of the witnesses at the hearing represented the property-casualty insurance industry, but Gates spoke on behalf of the American Council of Life Insurers, Washington, as well as his own company.
State regulators are doing their best, but “increasingly they are laboring under a system that is incapable of responding adequately to the realities of global risk and capital management,” Gates said at the hearing.