Federal regulators showed they are paying attention at the state level even as state regulators want to be heard on the international level.
Eighteen state insurance commissioners — the executive layer of the membership of the National Association of Insurance Commissioners (NAIC) – plus its CEO, former Sen. Ben Nelson, met with Treasury Secretary Jacob Lew this morning with the goal of working together to modernize the system of insurance regulation and getting the states' voice heard internationally.
Lew also discussed Treasury fostering “a race to the top” internationally and underscored the U.S. government’s continued focus on higher global standards, a clear reference to the global capital standard handed down to global insurance supervisors by the G-20‘s Financial Stability Board (FSB).
The NAIC raised the issue of a lack of state regulatory membership on the FSB, which is handing down key policy mandates to the IAIS and banking supervisory bodies. Treasury, along with the SEC and the Federal Reserve, are the only U.S. members of the FSB.
On captives, the Treasury’s Office of Financial Research (OFR) today, in its annual report on threats to stability, also singled out captives with regard to major financial data gaps.
OFR noted that state insurance regulators, through the NAIC, have been exploring options for increasing transparency in the area.