We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • FSOC: Regulators Making Progress Toward Financial Stability; Dangers Loom

    June 23, 2016 by Frank Klimko

    WASHINGTON – Regulators have made significant progress in improving financial resiliency and reducing economically risky business practices that led to the U.S. financial meltdown eight years ago, according to a new report by the Financial Stability Oversight Council.

    “Financial regulatory reforms and a strengthening of market discipline since the global financial crisis have made the U.S. financial system more resilient, as vulnerabilities remained moderate,” the report said.

    Despite the gains, dangers still exist and federal regulators, their state counterparts, and financial services companies must remain vigilant, according to the FSOC’s 2016 Annual Report. The council — made up of the country’s top federal financial system regulators — unanimously approved the report June 21.

    “U.S. markets and financial institutions are constantly evolving,” Treasury Secretary Jacob Lew said at the meeting, “and we must remain alert and responsive to new challenges in order to maintain the safety, soundness and resiliency of our financial system.”

    Much of the report focused on the potential risks generated by the banking sector of the financial system, referencing the insurance industry in just a few sections.

    That bank-centric focus is probably appropriate for the FSOC in general, Adam Kerns, American Insurance Association assistant general counsel, told Best’s News Service

    “I generally think it’s focused mostly on the banking sector,” Kerns said. “That reinforces our point that the insurance industry is inherently not risky.”

    “We are not a source of systemic risk,” Kerns said. “Insurance companies provide stability in the market.”

    Jimi Grande, senior vice president of federal and political affairs, National Association of Mutual Insurance Companies, agreed.

    “The FSOC’s annual report is focused almost entirely on other aspects of the financial services industry, further supporting NAMIC’s message since the writing of the Dodd-Frank act that insurance, particularly traditional property/casualty insurance, simply does not pose a systemic risk to the economy,” Grande said.

    The report did note the insurance sector continues to struggle with the low-yield environment, which has led some carriers into lower credit quality asset investments and less-liquid portfolios that could pose threats to their financial strength.

    The FSOC made a similar warning in the 2015 annual report, which warned against insurers taking on incremental risk by extending the durations of their portfolios (Best’s News Service, June 12, 2015).

    FSOC issued the same warning with additional urgency this year, noting global long-term interest rates have continued to fall. The FSOC’s annual reports are designed to set priorities for the next year and assess the current state of the financial industry, including the insurance market.

    In general, the insurance industry suffered some headwinds last year, according to the report. Profitability, as measured by net income in 2015, was $58.3 billion in the property/casualty sector and $40.2 billion in the life insurance sector, resulting in total industry profits of $98.5 billion, the report said. Overall profitability dropped by 4.37% from 2014 ($103 billion) with the P/C sector experiencing a loss of 10.3% from the 2014 level of $65 billion. Conversely, life insurers notched a 5.79% hike from the 2014 level of $38 billion.

    The property/casualty losses were largely driven by incurred losses that overwhelmed the premium growth the sector recorded last year, the report said. Life insurers reported a slight decrease in premiums, but lower reserve increases last year provided for the hike in net profits, the report said.

    Despite last year’s results, the P/C sector remains healthy, Dave Snyder, Property Casualty Insurers Association of America vice president, international policy, told Best’s News Service.

    “The (P/C) industry is financially strong and competitive in a regulatory system that puts a high premium on consumer protections,” Snyder said. “It achieves, generally speaking, a very effective and beneficial balance.”

    Snyder noted the report did not recommend additional insurance regulations.

    “There is nothing in the report to suggest that we need any dramatic change or that we need more regulation,” Snyder said. “It identified a number of issues that companies are aware of and working with regulators.”

    The report also addressed the council’s biggest setback so far, the federal court ruling that rescinded the systemically important financial institution designation for MetLife Inc. The government has appealed to overturn the ruling (Best’s News Service, June 17, 2016).

    The council continues to vigorously evaluate potential SIFI candidates and has not slowed down in the aftermath of the court ruling, FSOC officials said at a background briefing prior to the release of the document. Since its inception, the council has designated four nonbanks as SIFIs and has rejected the designation for five others. FSOC officials would not say if any nonbanks were in the SIFI pipeline or if the council was re-evaluating its SIFI exit ramp.

    (By Frank Klimko, Washington correspondent, BestWeek: Frank.Klimko@ambest.com)

    Originally Posted at AM Best on June 22, 2016 by Frank Klimko.

    Categories: Industry Articles
    currency