NAIC Supports Strong, Independent Regulation Of Insurers’ Investments

National Association of Insurance Commissioners (NAIC) President and Maine Insurance Superintendent Alessandro A. Iuppa today told a key congressional panel that strong financial regulation of insurance companies is essential to consumer protection and state officials are committed to an open, transparent process for accurately analyzing insurers’ investments.

"Without the consumer protection afforded by strong financial regulation, an insurance policy may not be worth the paper it is written on," Iuppa said. "State insurance officials serve the public by means of independent and honest financial oversight to safeguard insurers’ capacity to pay claims."

Iuppa welcomed congressional interest in the NAIC’s recent decisions on hybrid securities, which are highly complex, often customized, non-conventional and constantly evolving financial instruments.

"We stand by our recent analysis, both in the substance and the process," he said. "Although some asserted that our reclassification of a relatively small number of securities would have dire consequences, we have uncovered no insurer that would become financially impaired or unable to meet the minimum capital and surplus level required by our risk-based capital formula as a result of these decisions."