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NAIC Submits Testimony on FSOC Nonbanks Designations Process

Monica J. Lindeen, NAIC President and Montana Commissioner of Securities and Insurance

Today the NAIC submitted testimony to the U.S. Senate Committee on Banking, Housing and Urban Affairs. The letter outlined regulators’ concerns with the Financial Stability Council’s (FSOC) process for designating nonbank financial firms as systemically important financial institutions. The NAIC raised concerns regarding FSOC’s understanding of insurance and its regulation, the failure of FSOC to provide an “exit ramp” for designation that would reduce risks to the financial system, and the lack of involvement of state insurance regulators in FSOC deliberations.

Click here to read the testimony.

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

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