Insurance Executives to Testify at Congressional Systemic Risk Hearing; 10 a.m. Live Webcast

The U.S. House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises will hold a hearing this morning, beginning at 10:00 a.m., to further explore how to improve oversight of the insurance industry in order to protect insurance consumers from risks in the system and prevent insurance companies from posing a systemic risk and threatening the American financial system. 

To watch a live webcast of the hearing, click here.

To read prepared testimony from witnesses scheduled to be present at today’s hearing, click on a name below:

• The Honorable Peter Skinner, Member, European Parliament
• The Honorable Michael T. McRaith, Director, Illinois Department of Insurance on behalf of the National Association of Insurance Commissioners
• Ms. Teresa Bryce, President, Radian Guaranty Inc. on behalf of the Mortgage Insurance Companies of America
• Mr. Sean McCarthy, Chief Operating Officer, Financial Security Assurance, Inc.
• Mr. Kenneth F. Spence, Executive Vice President and General Counsel, Travelers
• Mr. Franklin Nutter, President, Reinsurance Association of America
• Mr. Patrick S. Baird, Chief Executive Officer, AEGON USA, LLC on behalf of the American Council of Life Insurers
• Mr. John T. Hill, President and Chief Operating Officer, Magna Carta Companies on behalf of the National Association of Mutual Insurance Companies

“It is now clear that we must restructure the federal government’s role with regard to insurance oversight,” said Subcommittee Chairman Paul E. Kanjorski (D-Pa.).  “At the very least, the federal government must have in-house expertise on this significant sector of the financial services industry and have an ability to watch over insurers as part of broad systemic risk and consumer protection authorities.  A federal office, focused on collecting and analyzing insurance information, would provide the minimum role for the federal government in ensuring that insurance is not at a disadvantage as compared to other financial products by helping Congress and the federal government make better decisions regarding insurance policy matters.”

Chairman Kanjorski added, “We must also further examine the ultimate role of the federal government in overseeing insurers, insurance holding companies, and reinsurers.  The bond insurance crisis, the near-collapse of American International Group (AIG), numerous insurers requesting TARP funding, and the need for mortgage insurers to obtain more capital to underwrite new business have all shown that insurance is both an important part of the national economy and certain lines may require more comprehensive and consolidated oversight.  I look forward to hearing from a variety of witnesses during this hearing and learning their thoughts on this important issue.”

Should you have any questions or comments, please contact Colodny Fass.

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