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SOURCE National Association of Insurance Commissioners
KANSAS CITY, Mo., July 16, 2014 /PRNewswire-USNewswire/ -- The National Association of Insurance Commissioners (NAIC) today launched 'Protecting the Future,' an educational initiative about the indispensable role state-based insurance regulation plays in strengthening the U.S. economy. This unprecedented education program from the NAIC is being deployed in Washington, DC, Brussels, the capital of the European Union, and in Basel, Switzerland, the seat of the Financial Stability Board (FSB) for the G-20.
This new program highlights the compelling benefits state-based insurance regulation provides to American consumers, employers and taxpayers. It is a critical time for state-regulators as some federal officials and global regulators are seeking unprecedented authority over American insurance markets, including the imposition of bank-centric regulation on insurance companies.
States have effectively regulated America's insurance companies for nearly 150 years. Even during the 2008 financial crisis-as the federal banking and mortgage regulatory regimes collapsed-the state-based insurance regulatory system performed well, protecting policyholders and helping to prevent an even deeper economic downturn.
"The U.S.'s state-based insurance regulation system has an unmatched track record and can best adapt to meet our future economic and financial challenges," said Senator Ben Nelson, NAIC CEO. "By ensuring soundness, solvency, stability and competition, state-based insurance regulation does more than make insurance markets work-it protects the future for American consumers, employers and the economy as a whole."
Each year in the United States, businesses, consumers and governments spend over $1.7 trillion on insurance products from more than 6,000 different insurance companies, making up over 34 percent of premium volume worldwide. State regulators, in collaboration through the NAIC, supervise these transactions and ensure that American markets, businesses and consumers are protected.
"Our proven system continues to effectively evolve as the states respond to emerging issues, new products, innovations and changes in the financial services landscape," said NAIC President and North Dakota Insurance Commissioner Adam Hamm. "Federal officials need to understand that what works in one state may not work in another. State insurance regulation works because it's specific to the industry's unique risks and able to reflect state-specific considerations."
Of the 50 largest insurance markets in the world, 24 are U.S. states overseen by members of the NAIC. By collaborating with the 56 state and territorial insurance commissioners, the NAIC streamlines the process of insurance companies bringing products to market, the sale of products in multiple states and the ability of insurance companies to match the needs of a growing and dynamic consumer marketplace.
Protecting the Future is a sustained, broad-based educational initiative that will include:
"Through this new initiative, we are going to make sure the compelling value proposition of state-based insurance regulation is well understood by policymakers, business leaders, consumer advocates and economic thought-leaders," said Nelson.
For more information about Protecting the Future and the benefits of state-based insurance regulation, please visit: www.naic.org/protectingthefuture.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.
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