Speaking at a public hearing at the invitation of the New York State Assembly Standing Committee on Insurance on May 8, PIA of New York spoke in favor of a bill that would enable New York state to join the Interstate Insurance Compact, which seeks to create uniformity in the industry without requiring federal regulation.

“The proposed legislation represents an opportunity to act on an initiative that would benefit state insurance regulators, consumers and the insurance industry,” PIANY immediate past President David Dickson told the committee. “The manner in which insurance products are filed, reviewed and approved would be streamlined, creating a more effective, efficient system.” The IIC was created by legislators and regulators to promote uniformity in the industry by providing a single point of product and rate filings, and hold insurers to a set of uniform, national standards.  The compact advances the objective of insurance regulatory modernization, and effectively responds to ongoing calls in the U.S. Congress for the creation of a federal insurance regulator. To date, 31 states have joined the IIC.

Dickson also voiced PIA’s opposition to an optional federal charter. “Make no mistake about it, proposals to impose federal regulation of insurance are merely attempts to reclassify insurance products as banking products and represent competition for market share by major players at the expense of consumers and smaller regional carriers,” he said. “Look no further than the advocates of these proposals: large banks, securities firms and a few carriers. These proponents want to expand their market share by using a federal regulatory system to gain an unfair advantage over their competitors, particularly the regional and mutual insurance carriers.”

PIA of New York Supports State Based Regulation (PIANY 5/8/08)

May 14, 2008