The U.S. Financial Stability Oversight Council (FSOC) has until Sept. 23 to decide upon the appealed designation of Prudential Insurance as a systemically important financial institution (SIFI). But one member of the group of the nation’s top financial regulators says some of his colleagues don't seem to understand how insurance works.
One of the five nonvoting FSOC members, Missouri Insurance Director John Huff, said today, during a meeting of the National Association of Insurance Commissioners's (NAIC) financial stability committee, that "some of my fellow FSOC members may not understand the insurance industry."
This analysis might play a part in Prudential’s ultimate designation, despite its pleas against such a scenario.
This analysis had left others in the sector also shaking their heads and certain the SIFI designation will also be applied to Prudential, which appealed its tentative designation about a month ago.