As the Senate Committee on Commerce reviews the adequacy of state-based insurance regulation, segments of the industry are quickly taking sides.
In order to remain competitive with nontraditional competition, constituents of the American Council of Life Insurers (ACLI, Washington, D.C.) have advocated providing life insurers with an option to be regulated federally. "Our system of...regulation must be brought in line with the circumstances of today's marketplace," testified Stephen Rahn, VP, associate general counsel, Lincoln National Life Insurance Co. (Hartford). Rahn added that non-insurance firms have far more efficient systems of regulation, often with a single federal regulator, which translates into marketplace advantages-especially when it comes to speed-to-market. On the state level, ACLI is working to improve the state regs.
Meanwhile, the Independent Insurance Agents & Brokers of America (IIABA, Alexandria, Va.) testified against federal oversight. "A new federal bureaucracy would add to the regulatory infrastructure," said Thomas Ahart, IIABA spokesperson. IIABA recommends that in lieu of federal regulation, states establish more uniform standards.
Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio