Podcast Center
Video Center
Webcasts
Resource Center
Events
July 23, 2006 at 04:00 PM
A Treasury official declined to endorse any of the various proposals for federal involvement in insurance regulation on July 18 but said the problems facing the industry would likely require some congressional action.
In testimony before the Senate Banking committee, Treasury Under Secretary for Domestic Finance Randal Quarles said that the Treasury has been “monitoring the developments of the various approaches to modernizing insurance regulation” including those being proposed by the National Association of Insurance Commissioners, Kansas City, Mo., the proposed establishment of federal standards to be enforced by states, and the optional federal charter.
“While we are still evaluating what approach we believe to be the most appropriate, what is clear is that each of them should be assessed,” in light of the issues facing the industry.
Like other financial services, Secretary Quarles noted that insurance plays an important role in the U.S. economy due to the enormous amount of assets managed by the insurance industry and the potential for “ripple effects” of conditions in the insurance industry being felt across the general economy.
