by: Darla Mercado

He spoke at the 19th annual Executive Conference for the Life Insurance Industry in New York. Accounting firm Ernst & Young LLP and law firm Dewey & LeBoeuf LLP, both in New York, sponsored the event.

The nationalization of American International Group Inc. of New York points to a convergence of two issues: regulatory reform and a solution to the retirement crisis, Mr. Condron observed.

''With the federal takeover of AIG, we have our first nationalized multiline insurer,'' he said.

''Clearly, it's time for the industry and the government to work together or spiral into poverty. Regulatory reform needs to be top of mind for Congress in the coming months,'' Mr. Condron said.

Different standards across the United States don't help customers, while a ''level playing field'' of federal regulation would favor well-run companies, he noted.

It would also help with global perceptions of the U.S. insurance market. ''We've been criticized abroad for not having a single regulatory voice or entity that can speak for the market,'' Mr. Condron said.

The federal help extended to AIG, which has ballooned to about $150 billion, plus help that may be extended to other insurers, points the way to some form of federal regulation, he added.

That opinion was echoed by Gary C. Bhojwani, president and CEO of Allianz Life Insurance Company of North America in Minneapolis, who said that the carrier is a consistent public supporter of the optional federal charter.

''There was more progress made on the life side this year, and I think it has a real chance of passing and becoming a reality,'' he said.

The current proposal for a federal office of insurance information was a reasonable start as an interim step, Mr. Bhojwani added.