A strong Federal Insurance Office would create healthy competition at home and a level playing field for U.S. insurers abroad, Rep. Ed Royce, R-Calif., said at a House Financial Services Committee hearing on June 13.
Royce, a senior member of the committee and chairman of the House Foreign Affairs Committee, made his comments in response to testimony by Ben Nelson, CEO of the National Association of Insurance Commissioners, at the hearing.
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The hearing was requested by state insurance regulators at the urging of insurance industry trade groups, including the American Insurance Association, the Financial Services Roundtable, the National Association of Mutual Insurance Companies and the Property Casualty Insurers of America. All are concerned with any potential Federal Insurance Office role in insurance regulation, as well as by taking the lead in talks being conducted internationally aimed at creating uniform and high capital standards.
Nelson has criticized FIO director Michael McRaith for not pushing back strongly enough in international talks, in favor of regulatory standards that would support current U.S. insurance oversight policies, namely a decentralized, state-level system.