In The News

Nov. 18 (BNA) -- Lawmakers who want greater involvement in negotiations over global insurance standards told regulators Nov. 18 they're keeping an eye on the process and aren't satisfied with its transparency so far.

The self-described “Team U.S.A.,” made up of regulators representing the Federal Reserve Board, the Treasury Department and state authorities, appeared before a House panel to update members on international standards currently being developed by the International Association for Insurance Supervisors (IAIS). ...

The Fed and Treasury representatives took the opportunity of the hearing to characterize the change as increasing transparency by eliminating the ability to “pay to play,” and preserving the IAIS's independence from the industry. ...

Rep. Bill Huizenga (R-Mich.), however, disagreed. “You might think it's an improvement, but there are a whole lot of people who don't think it's an improvement,” Huizenga said to McRaith. “You've cut off the highway before you put on the on-ramp. There's no on-ramp or off-ramp. Mr. [Roy] Woodall was not allowed to come to meetings—this flies in the face of transparency.”

Woodall, the Financial Stability Oversight Council's independent insurance expert, became an IAIS observer in February of this year, a status that will no longer confer special access. Woodall had been seeking greater involvement in the IAIS for several months prior to becoming an observer.

“Relegating systemic risk policymakers to only those opportunities afforded to the general public would reduce the likelihood of effective attainment of the IAIS goal of providing a meaningful contribution towards global financial stability,” Woodall said in an August comment letter to the IAIS following its initial proposal to end observer status. ...

Read the entire article here