The FinServ Insurance, Housing and Community Opportunity Subcommittee convened a session today looking specifically at how systemic rules affect U.S. insurers, also focusing on trade barriers that limit U.S. competiveness in this sector. Insurance industry representatives were unanimous in their support for the Federal Insurance Office, calling for harmonized methodologies for designating SIFIs (see FSM Report SYSTEMIC60) and globally-systemically important insurers (G-SIIs). Subcommittee Members largely agreed with their assessment, as well as on the need for U.S. systemic regulations tailored for the insurance industry (an issue addressed earlier this week in FinServ, as analyzed in Client Report SYSTEMIC63). Director Michael McRaith stated that FIO is working on an array of global initiatives with U.S. impact (e.g., how to name systemic insurers) and on reducing market barriers (see Client Report CHINA13). However, he indicated that FIO would focus on “best practices” and other standards based on recent regulatory experience, not necessarily those now mandated by state insurance regulators. This report analyzes today’s hearing.
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