At its second public meeting on Aug. 6, the Federal Advisory Committee on Insurance (FACI), a sort of private-public armchair consultancy branch of the Federal Insurance Office (FIO) at the U.S.Treasury, signaled it was viewing U.S. insurance regulation through the wide-angle lens of internationalization, and also seeking input on shortcomings or the need for updating state insurance regulation.
FIO Director Michael McRaith also said the long-awaited modernization report could be expected “in the near future,” according to those present.
The latter subcommittee’s purview is more obvious internationally, by name--it is charged with determining whether it was important for Europe and the U.S. to have compatible regulatory systems and determining what “compatible” would mean in this context and whether the U.S .regulatory system is equipped to regulate insurers doing business internationally and whether there are gaps in the U.S. system that put U.S. insurers at a disadvantage when doing business internationally, Stead wrote.
On the Affordability and Accessibility Subcommittee, the charge is also international-- determining the impact of international regulatory developments on U.S. consumers. It also examines the role of state regulators by asking whether the role of U.S. regulators has kept pace with the U.S. market, whether producers have been affected by U.S. demographic changes and whether the regulation of producers domestically by the states has kept pace with any such changes, according to the law firm’s write-up. It will also ask whether personal lines insurers have been affected by the changing demographics in the U.S.