Ben Nelson, CEO of the National Association of Insurance Commissioners has outlined several concerns with the work of the Federal Insurance Office.
FIO and Treasury should show “Deference” to state regulators in certain regulatory forums, says Nelson today during testimony at a hearing before the Subcommittee on Housing and Insurance of the House Financial Services Committee.
Moreover, Nelson testified that “it is inappropriate for FIO or any other nonregulator to seek to participate in supervisory colleges, which are vehicles to discuss supervision of specific companies, without an invitation from the [state] regulators.”
Nelson furthermore criticized the direction of international work on Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame) and other projects of international insurance bodies.
Nelson says the NAIC supports the original intent of ComFrame to attain a framework of cooperation and coordination among jurisdictions, but regulators remain wary of “mission creep” and the “accumulation of overly prescriptive requirements” as the IAIS continues to develop ComFrame.
State regulators fear a “one-size-fits-all approach that could impose new burdens on U.S. companies and consumers with little, if any, benefit,” he says.