Insurance groups clash over regulation

Insurance industry representatives and regulators could not agree on moving ahead with comprehensive reform legislation.
JUL 29, 2008
Insurance industry representatives and regulators could not agree on moving ahead with comprehensive reform legislation at a hearing today held by the Senate Banking Committee. As a result, committee chairman Christopher Dodd, D-Conn., indicated he will try to move legislation that is narrow in focus. Most likely, the legislation would create a uniform system for regulating surplus lines of insurance, which is insurance sold in areas where insurance products are limited, such as coastal areas. Without consensus among industry groups, Mr. Dodd said, legislation establishing an optional federal charter was unlikely to be approved by the Senate. The American Council of Life Insurers and other insurance groups have been pushing for an optional federal charter for several years. They cite the need for more efficient regulation, which they argue a federal regulator would provide. There has been an “inability of state regulators and legislators to act collectively to transform a badly fragmented state regulatory system into a uniform, efficient national system that serves the needs of what is now a global industry,” John Pearson, chairman, president and chief executive of The Baltimore Life Insurance Co., said in testimony was given on behalf of ACLI. But Steven Goldman, commissioner of the New Jersey Department of Banking and Insurance, argued in his testimony that the U.S. insurance system has “grown exponentially in recent decades in terms of the amount and variety of insurance products, and the number of insurers,” with U.S. premiums topping $1.4 trillion. “Clearly, this is not an industry that has suffered under state insurance supervision,” said Mr. Goldman, who testified on behalf of the National Association of Insurance Commissioners of Kansas City, Mo. “State regulators’ modernization efforts have led to a competitive, profitable market for insurers and lower costs for consumers,” he said.

Latest News

AssetMark's Talk Tracks AI gives advisors a script for client calls
AssetMark's Talk Tracks AI gives advisors a script for client calls

The new AI feature generates instant client portfolio talking points, slashing meeting prep time for advisors.

Behind the Great Wealth Transfer: Citizens bets on business owners
Behind the Great Wealth Transfer: Citizens bets on business owners

As Citizens expands its advisory footprint, the bank is also going after wealth trapped inside business ownership

Forbes and Shook pull the plug on rankings, events, in 2026
Forbes and Shook pull the plug on rankings, events, in 2026

The Forbes rankings are highly sought after by some advisors and firms for marketing purposes.

Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition
Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition

Meanwhile, an advisor tuck-in from Edward Jones expands Kestra's Washington, D.C.-area presence, and Janney deepens its Connecticut footprint with an experienced Wells Fargo advisor.

Kovack Financial Network launches private succession platform for advisors
Kovack Financial Network launches private succession platform for advisors

KFN Succession Center pairs advisors weighing retirement with buyers, as next-gen affordability keeps eroding industry-wide.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income