AIA STATEMENT ON PASSAGE OF DODD-FRANK FINANICAL REGULATORY REFORM LEGISLATION
WASHINGTON, D.C., July 15, 2010 – Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), today issued the following statement on the passage of the “Dodd-Frank” financial services regulatory reform legislation that now goes to the President’s desk for his signature.
Ms. Pusey’s statement follows:
“The American Insurance Association supports efforts to reform and modernize financial services regulation. The bill passed today largely recognizes that property and casualty insurers do not pose systemic risk. This meaningful acknowledgment is a victory for the many policyholders that rely upon our low-risk business model to provide them security in times of uncertainty. The bill also takes necessary steps to prevent insurers from being lumped into many of the new “bank-focused” provisions. This, too, is a substantial recognition of the insurance business model.
"With some 250 new regulations to be implemented by 11 different federal agencies, the stage is now set for an intense rulemaking process that will be AIA’s top priority. As was the case during the legislative process, AIA’s focus will remain on identifying how the nature of insurance is different than that of the banking sector and emphasizing those unique differences with the appropriate rule making authorities. We need to remain vigilant to ensure that the low risk nature of the property and casualty industry continues to be recognized during the implementation phase.
“The legislation establishes a federal office of insurance (FIO), which will increase the federal government’s capacity to address insurance related issues and will make a substantial contribution toward broadening and deepening our nation’s understanding of the critical role of insurance in our financial system.
"In the interim, AIA looks forward to partnering with the U.S. Treasury to help establish this new federal office and guarantee that it is staffed with the best and the brightest the insurance industry has to offer."