“We applaud the Council’s decision to rescind Prudential’s designation. This action reflects a greater appreciation of the state insurance regulatory regime and enhancements made to our group supervisory tools,” said Julie Mix McPeak, NAIC President and Tennessee Commissioner of Commerce and Insurance. “It also recognizes the work of the New Jersey Department of Banking and Insurance, as Prudential’s group-wide supervisor, to implement those tools and apply them to its regulation of Prudential.”
Established by the passage of the Dodd-Frank Wall Street Protection and Consumer Protection Act in 2010, the FSOC was established to identify and address systemic risks to the U.S. financial system. It is meant to bring together regulators from different industries to share perspectives, and identify and address threats across sectors. However, the state insurance commissioner representative to the FSOC is not a voting member.
“The rationale justifying the de-designation reflects a revised analytical approach that is consistent with the insurance business model and its regulation,” said Eric A. Cioppa, NAIC President-Elect and Maine Superintendent of Insurance. “My predecessors have done an excellent job educating the Council on how insurance is regulated and the tools state insurance departments employ to address any potential risks. I look forward to continuing to represent state insurance regulators and working with my colleagues on the Council.”
In September, state insurance regulators appointed Cioppa to a two-year term as the state insurance commissioner representative on the FSOC. Cioppa will represent the interests of the nation's state insurance regulators on the Council.