The G-20’s Financial Stability Board (FSB) says it will identify in July global insurers it deems so important and interconnected to the worldwide insurance economy that tighter and more comprehensive worldwide supervision is warranted.
Despite the fact that many in the global insurance world have argued there should be no Global Systemically Important Insurers (G-SIIs), as they are called, the International Association of Insurance Supervisors (IAIS) submitted a list to the FSB, which issued a release from Basel, Switzerland today following its meeting yesterday.
However, McRaith said during the question and answer portion of the hearing that "any determination at the FSB level for any company would be referred to the domestic authority, the domestic risk analysis process and in the United States that's the Financial Stability Oversight Council."
Insurers complain they are not in the inner circles of the IAIS process, that it has not been a transparent process, and that they do not know what the final policy measures are. Most insurers are concerned that the G-SII process does not reflect the industry’s view that insurers, by and large, do not pose a systemic risk.