Yes. Leave Big Insurer Wellness to Us: NAIC Head on FSOC Proposal
March 12, 2019 by Allison Bell
Federal financial services regulators could end up leaving state insurance regulators in charge of ensuring that giant insurers exercise and eat their vegetables.
The head of a group for state insurance regulators is welcoming a Financial Stability Oversight Council (FSOC) proposal that could give him and his colleagues more authority over insurance giant wellness.
Eric Cioppa, president of the National Association of Insurance Commissioners (NAIC), put out a statement responding to proposed changes in how FSOC identifies organizations other than banks that are too important to the stability of the U.S. financial system to fail, and how FSOC responds to concerns about those organizations’ financial health.
“I am generally supportive of this proposal and look forward to the reactions of my insurance regulator colleagues,” Cioppa said in a statement. “The most appropriate approach to addressing risks to financial stability is for FSOC to work in conjunction with existing regulators to identify those risks, especially in the non-bank sectors. Mitigation is best handled by the regulators with authorities to address them in the first instance.”
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