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Insurers are up to their knees in federal regulation, even without an optional charter.
Generations of parents have cited this warning to their children: Be careful what you ask for, you may get it! That thought sprang to mind as I considered the decades-old debate over an optional federal charter.
Many in the insurance industry have long wanted the option of a federal, in lieu of a state, regulator. But now that federal involvement in insurance regulation (not optional) is closer than ever, the industry may have just cause for trepidation.
The hodgepodge of state regulation could well be replaced by an alphabet soup- FRB, FSOC, FIO,
Buyer’s remorse is understandable if what is happening on the
This sparked bipartisan unity when four members of the
The NAIC complained that Treasury was blocking its representative, the only insurance industry specialist on the panel, from using the resources necessary to properly do his job. Major trade groups- ACLI, PCI, AIA and RAA- sent a joint letter to Treasury Secretary
New technology may be necessary. A regulatory reporting technology solution will need to be implemented and interfaced with existing information systems.
So, a look at federal regulation shows the industry is either being overlooked, told to wait, or facing additional regulatory burdens on a short timeline. The one thing there isn’t is an optional federal charter.
Current federal regulation may not be what the industry asked for.
It is, however, what we haveand we need to be prepared.
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The cost of compliance with new rules already in place may be high.
Best’s Review columnist