Insurance Trade Groups Praise White House Appointment of Roy Woodall as FSOC Expert

Trade associations praised Woodall's understanding of the state insurance regulatory system and his appreciation of the less risky nature of the insurance industry with reference to the potential for systemic risk in the financial services industry.

Insurance industry groups have reacted favorably to President Obama's nominee S. Roy Woodall as the insurance expert on the Financial Stability Oversight Council (FSOC), a body called for by the Dodd-Frank Act. Three insurance representatives will sit on the FSOC, including: Missouri Insurance Director John Huff as the representative of National Association of Insurance Commissioners (NAIC) as a non-voting member; Michael McRaith, the new Federal Insurance Office (FIO) director as a non-voting member; and Woodall as a voting member.

The Property Casualty Insurers Association of America (PCI) applauded Woodall's nomination in a statement published Friday. "We are pleased that the Department of Treasury has listened to the calls from the insurance sector and congressional leaders from both sides of the aisle to fill this critically important position," commented David Sampson, president and CEO of PCI. "Mr. Woodall brings extensive experience in the insurance sector and an understanding of the state insurance regulatory system."

"Mr. Woodall will play a very important role on the FSOC as regulators implement the Dodd-Frank Act related to nonbank financial institutions," Sampson added." The Dodd-Frank Act appropriately treats insurance very differently than other financial sectors, and it recognizes the strong consumer protections already provided by the state regulatory and guaranty fund system. Property casualty insurers are not highly leveraged or interconnected and have a fundamentally different business model than banks, a fact that warrants different regulatory treatment."

The National Association of Mutual Insurance Companies (NAMIC) congratulated Woodall on his nomination and expressed its gratification at the prospect of working with the new expert member of FSOC.

"[Woodall's] wealth of insurance experience will provide FSOC with the necessary perspective it needs as it seeks to regulate systemic risks to the nation's economy," commented Jimi Grande, senior vice president of federal and political affairs, NAMIC. "As a former Treasury official and state insurance regulator, Mr. Woodall understands the role of insurance in the economy, and is well aware that mutual property/casualty insurance companies did not contribute to the economic crisis or pose an ongoing risk to economic stability. With this knowledge, Mr. Woodall will help focus the designation process for Systemically Important Financial Institutions on those companies who, through their participation in high-risk activities, pose a true risk to the American economy."

Woodall was the Senior Insurance Policy Analyst at the Department of the Treasury from 2002 and 2011. He has been a consultant to the Congressional Research Service; managing director for Issues and VP/chief counsel president for the American Council of Life Insurers (ACLI), president of the National Association of Life Companies; and Kentucky Commissioner of Insurance during the late 1960s.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio