Letter to the Editor RE: Re “Both Sides of the Aisle See More Regulation, and Not Just of Banks” (New York Times news article, Oct. 14)
The entire insurance industry does not believe that the current patchwork system of state regulation is the best way to regulate the industry. In fact, our members would welcome a more focused and efficient regulation of insurance companies at the federal level.
Treasury Secretary Henry M. Paulson Jr. has supported enactment of an optional federal charter for insurance companies that would allow them the option of being regulated at the federal level. He restated his view recently that the current crisis involving American International Group underscores the inadequacies in our current regulatory oversight.
Many in the industry believe it makes a great deal more sense for a federal regulator to monitor systemic risk and exercise groupwide supervision on a national basis to ensure safety and soundness.
Marc Racicot
President
American Insurance Association
Washington, Oct. 14, 2008
