A top official of the American Council of Life Insurers made clear to the House Financial Services Committee last week that life insurers acknowledge that federal regulators will be playing an increasing role in their lives, and that it is best for all concerned that everyone work together in order to get the job done at the lowest possible cost.
The comments by Gary Hughes, ACLI executive vice president and general counsel, put a surprising light on a hearing that was convened by the conservative majority to express disdain for any type of federal regulation.
He said the Dodd-Frank Act now gives the Federal Reserve a significant regulatory role with respect to those insurers that are designated as systemically important. Hughes noted that two of the ACLI's member companies have received that designation, and one additional company is under review for possible designation. Dodd-Frank also gives the Federal Reserve jurisdiction over another 12 of our member companies that control savings and loan institutions, Hughes said.
At the same time, Hughes said, the Financial Stability Board is directing the International Association of Insurance Supervisors (IAIS) to develop group capital and group supervisory standards applicable to internationally active insurance groups. We estimate that at least 18 of our member companies fall into this category, Hughes said.