It is increasingly likely Congress will impose some level of federal insurance regulation soon unless states act promptly to impose meaningful reform, the head of a property-casualty insurer group warned state regulators at a sitdown here last week.
The comments by David Sampson, president and chief executive officer of the Property Casualty Insurers Association of America, were among those voiced at a May 21 meeting attended by 28 state insurance regulators and 14 representatives of other state regulatory agencies.
Mr. Sampson was one of four insurance group leaders invited to speak at the “roundtable,” chaired by Kansas Insurance Commissioner Sandy Praeger, president of the National Association of Insurance Commissioners.
An NAIC official confirmed that the meeting was held, but declined further comment. Industry officials said the roundtable was arranged by the NAIC.
Those participating included the heads of PCI, the National Association of Mutual Insurance Companies, the Independent Insurance Agents and Brokers of America, and the Council of Insurance Agents and Brokers.
However, no invitation to participate was made to the American Insurance Association or the American Council of Life Insurers, according to officials of those trade groups. The two groups are leading the effort to pass federal legislation creating an optional federal charter for insurers.
Also among the participants were Sen. Richard Durbin, D-Ill., who is majority whip of the Senate; Rep. Barney Frank, D-Mass., chair of the House Financial Services Committee; and Rep. Earl Pomeroy, D-N.D., a former state insurance commissioner and NAIC president.
National Underwriter was unable to contact these officials by press time. Their presence was confirmed by representatives of the trade groups that did participate.
PCI, IIABA and NAMIC are longtime supporters of continued state regulation of insurance, although PCI’s Mr. Sampson told NU last week the group is now focused on the quality of regulation, regardless of its location. IIABA has also indicated it is open to some federal involvement, but more in terms of setting regulatory benchmarks for the states to implement, or in helping to establish a national producer licensing body.
The CIAB was asked to testify because it supports uniform state licensing and also seeks backing from state regulators of the legislation passed by the House last year that would simplify regulation of surplus lines and reinsurance. The latter bill could be the subject of a hearing in the Senate Banking Committee as early as next month.