The head of the American Bar Association insurance modernization task force says Congress will insist on “more uniform, more national regulation” in 2009 in the wake of the failure of American International Group Inc.
“I see some form of federal regulation, maybe not in all lines, and in all areas of regulation, but I predict more strict financial regulation of insurers,” says Fran Semaya.
Semaya is a partner in the Philadelphia office of Cozen O’Connor; chair of the Task Force on Federal Involvement in Insurance Regulation Modernization at the ABA, Chicago; and president of the International Association of Insurance Receivers, New York.
Semaya says optional federal charter proposals – proposals to let insurers choose between traditional state regulation and regulation by a new federal entity – tend to be associated with deregulation efforts.
Recent events likely will lead to more regulation, not less, Semaya says.