Members of the Subcommittee of Housing and Insurance of the House Financial Services Committee peppered leading insurance governmental representatives, NAIC CEO Ben Nelson, the Federal Insurance Office Director Michael McRaith, and the insurance expert on the U.S Financial Stability Oversight Council (FSOC) Roy Woodall, on the deep concerns the direction of international regulatory standards are taking during a hearing Thursday.
The subcommittee expressed concern about how the three agencies are working together and if any lack of collaboration is an obstacle in representing U.S. interests abroad.
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“This will be the first of many hearings examining the international competitiveness of the U.S. insurance industry,” stated Subcommittee Chairman Randy Neugebauer, R-Texas.
The concerns reflected the U.S. insurance industry’s own concern that the International Association of Insurance Supervisors (IAIS) is moving toward global capital standards that reflect Eurocentric and bank-centric standards.
These are “ineluctable realities” McRaith said of industry’s global movement, adding that the U.S. industry needs to go to emerging markets if it wants growth. McRaith has called for capital standards for these developing economies in testimony.
FIO/the Treasury wants to support an international platform that allows for competitiveness overseas, McRaith said.