Faegre Baker Daniels and FaegreBD Consulting were pleased to partner again with Networks Financial Institute (NFI) and the Scott College of Business at Indiana State University in presenting the 10th Annual Insurance Public Policy Summit in Washington, D.C., on March 12, 2014. This year's Summit focused on U.S. and international insurance regulation.
All research presented at the Summit is available on NFI's website.
Below are a few points of interest from each speaker's remarks:
Indiana State University President Daniel Bradley and NFI Acting Executive Director Brien Smith welcomed the audience of industry professionals, Congressional staff, past and current state regulators, Treasury Department and other federal officials, academics, and industry stakeholders and commentators.
Congressman Randy Neugebauer (R-TX), Chairman of the House Financial Services Subcommittee on Housing and Insurance:
- Gave an update on the Subcommittee's priorities related to insurance, including TRIA and flood insurance reform. He also expressed a strong desire to change TRIA, not simply reauthorize it or allow it to expire, as he questioned whether it should be a permanent program leaving taxpayers at risk.
- Hailed the importance of NARAB II and expressed a hope that it would be enacted soon.
Senator Heidi Heitkamp, Member, Senate Banking, Housing & Urban Affairs Committee and Its Subcommittee on Securities, Insurance & Investment:
- Gave an overview of Senate priorities and work. Answered a question about the March 11, 2014, Senate hearing on capital standards agreeing that insurance companies should be treated differently than banks by the Federal Reserve for SIFIs and thrifts owned by insurance companies.
- Affirmed the continued regulatory role of states in insurance matters while noting the rise of the importance of trade negotiations which may impact the insurance industry and stakeholders.
Federal Insurance Director Michael McRaith:
- Discussed the release of the Modernization Report in December 2013, and its hybrid approach to regulation between state and federal regimes.
- Outlined the complex and increasing role of international insurance regulation.
- Said that the Prudential SIFI decision was made in a manner consistent with the Dodd-Frank statute.
NAIC President-Elect and Montana Commissioner of Securities and Insurance Monica Lindeen:
- Outlined the role of the NAIC in several projects including ORSA, reviewing insurance captives and trade talks with China and the European Union.
- Acknowledged that a growing part of her time as an insurance commissioner and NAIC official included international issues.
Industry Panel, with Peter Gallanis, President, NOLHGA; Tim Pawlenty, CEO, Financial Services Roundtable and former Governor of Minnesota; and Leigh Ann Pusey, President and CEO, AIA:
- Engaged in a vibrant discussion of challenges to the insurance industry in light of state, federal and international regimes.
- Acknowledged and gave suggestions for dealing with the new role of the Federal Reserve in developing capital standards for insurance companies now under its regulatory authority.
Co-Director, American Enterprise Institute's Program on Financial Policy Studies Peter Wallison:
- Outlined his arguments on why the Financial Stability Oversight Council was deficient in its designation of Prudential as a SIFI, especially pointing out the dissents by Council members who had insurance expertise.
- His paper is available here.
Institute of International Finance's Managing Director, Regulatory Affairs Andrés Portilla:
- Gave a presentation on the IAIS process of developing insurance regulatory standards and its projected and expected timeline for impacting international and domestic decisions.
- His slides are available here.
If you have any questions about the presentations and dialogue at the Summit, please contact any member of our insurance group.