The National Association of Insurance Commissioners (NAIC) is taking deep offense to the latest perceived blow by the Financial Stability Board (FSB) to the U.S. system of insurance regulation.
"The U.S. authorities should carefully consider and provide recommendations to Congress as to whether migration towards a more federal and streamlined structure may be a more effective means of achieving greater regulatory uniformity,” the report stated. Insurance regulators said they got a heads up on the report only a day before it was released to the public, and while the NAIC summer meeting was in session, Aug. 26.
“Moreover, the FIO’s current human resources may need to be augmented to fully address the tasks that it has been mandated under DFA. The FIO should also enhance its monitoring of the insurance sector through greater use of non-public information that it is able to access, and be given more resources and powers to be able to address issues and gaps that it identifies," the report stated. It raised eyebrows among some in the insurance sector for the strength of its language, whether they agreed with it or not, and by the fact that an international body was basically telling a U.S. agency, the Treasury, to staff up.