The House FinServ Subcommittee on Housing and Insurance convened a hearing today examining the raft of international regulatory standards facing U.S. insurers. Discussion covered several different issues, particularly the impact of ComFrame, U.S. efforts to coordinate with the IAIS on its pending systemic standards (see FSM Report INSURANCE30), and negotiations with the EU over Solvency II. The few Democratic Members present remained largely silent on these issues, as Chairman Neugebauer (R-TX) and his Republican colleagues repeatedly voiced their fears over the “bank-centric” regulatory standards being considered overseas. Concern was also apparent over the ability of Treasury’s FIO to effectively negotiate on behalf of U.S. interests. Officials from FIO, NAIC, and FSOC all testified, with the FIO Director pressed frequently for details on the emerging ComFrame system. Other issues discussed included reinsurance and coordination between the NAIC and FIO. Although no specific policy responses to these issues surfaced, both Chairman Neugebauer and Ranking Member Capuano (D-MA) made clear that additional hearings will be held in the near future. This report analyzes this hearing and its impact on pending U.S. and global rules.
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