US admin. to brief lobbyists on insurance - sources
by: Reuters
published: Jun 04, 2009
Insurance industry reform will be the chief focus of a briefing scheduled for Thursday evening by Obama administration officials to financial industry lobbyists, said sources familiar with the agenda.
Topics possibly open for discussion include a proposal to establish a U.S. insurance regulator. The nation's more than 6,000 insurers are now regulated largely by state and territorial governments.
The briefing could range further afield, possibly covering other parts of the administration's financial reform agenda, such as establishing a systemic risk regulator and writing new rules for derivatives markets, the sources said.
The insurance industry is still deeply divided on the idea of federal regulation. It is favored by large life insurers and some large property-casualty insurers because they could save money by answering to one regulator instead of more than 50.
Supporters of an optional federal charter for insurers have included Allstate Corp (ALL.N) and other large companies.
But smaller insurers and some other segments of the industry oppose the idea or have not taken a clear position.
Some consumer activists have said federal oversight could bring higher insurance rates and weaker consumer protections.
The Obama administration so far has not made insurance regulatory reform a high priority, although advocates of national oversight have been pushing for it to be included in the administration's ambitious list of objectives. (Reporting by Kevin Drawbaugh; Editing by Leslie Adler)
