NAMIC Statement on FSB Designation of Global Insurers as ‘Systemically Important’

Statement From Charles M. Chamness
President & CEO
National Association of Mutual Insurance Companies

NAMIC Statement on FSB Designation of Global Insurers as ‘Systemically Important’

WASHINGTON, D.C., July 19, 2013 – Charles M. Chamness, president and CEO of the National Association of Mutual Insurance Companies, issued a statement with respect to the Financial Stability Board’s initial list of “global-systemically important insurers” and the International Association of Insurance Supervisors publishing its G-SII assessment methodology and attendant policies.

“We are encouraged that the IAIS concluded yet again that there is no evidence the U.S. property/casualty insurance industry generated or amplified systemic risk within the global financial system and that the potential for systemic importance is considered to arise only in non-traditional or non-insurance activities.

“NAMIC remains concerned, however, that the IAIS, the FSB, and myriad national regulatory authorities remain committed to ensuring that selected insurance companies have the same ‘systemic risk’ designation that has been applied to banks and that the application of bank-centric standards are applied to insurance companies.

“It has been and remains NAMIC’s view that the property/casualty insurance industry poses virtually no threat to the financial stability of the United States in that it is competitive, well-capitalized, and already subject to stringent financial and operational regulation. NAMIC is a member of the Global Federation of Insurance Associations that also shares this view.

“NAMIC has worked steadfastly to ensure that mutual property/casualty companies are not swept up in this effort and the ‘systemic risk’ standards are not inappropriately applied.”

Matt Brady
Director - Federal Public Affairs