NAPSLO Takes Part in White House Discussions on Financial Regulation

NAPSLO was among a select group of insurance trade associations attending a Listening Discussion on Thursday with White House officials on regulation of the financial industry.

NAPSLO's Washington Representative, Maria Berthoud of B&D Consulting, and other industry representatives met with Diana Farrell, Deputy Director of the National Economic Council and Deputy Assistant to the President, and Michael Barr, Assistant Secretary for Financial Institutions at the Department of Treasury.

Other groups attending included the PCI, IIABA, AIA, ACLI, CIAB, NAMIC, NAIC, NAIFA and the Financial Roundtable.

"These are significant discussions on the future of financial services regulation and it is important that NAPSLO is able to explain the role of surplus lines insurance," said NAPSLO President John Wood.

NAPSLO has been asked by Administration officials for detailed positions on federal regulation and information on the surplus lines industry and is in the process of submitting the information.

Based on discussion from Thursday, the Obama Administration is committed to setting up a systemic risk regulator that would cover any entities that are determined to be too big to fail. The biggest unresolved issue is whether the systemic risk regulator authority is given to the Federal Reserve, or if a Council is established.

The other key tenet of the Administrations proposal will deal with consumer protections. They are considering developing a super regulator for Consumer Protections, or giving all current principal regulators an enhanced office of consumer protection.

There was spirited discussion regarding if insurance should be included in a federal charter, or if states could continue their supervisory role. NAPSLO urged for Federal Standards to be examined such as the NonAdmitted Reinsurance Reform Act of 2009 (HR 2571), and NARAB as ways to help the inefficiencies of state regulation without losing a high level of consumer protection. The NRRA was recently introduced in the House of Representatives and a number of other bills are under consideration.