2009 0305 - GOV - Perspectives on Systemic Risk
Crisis in Confidence
Ms. Vaughan: (Terri Vaughan (NAIC))
- (p25) ... I am wondering, again, just sort of thinking through it, whether it is sending the wrong signal to the marketplace, and particularly, I think about consumers, is it sending the wrong signal to consumers about the capital that is in these companies and how strong these companies are.
- One of my colleagues likes to say the greatest risk we have right now is a crisis of confidence. It is that people are scared.
- We know our policyholders are scared.
- That is one of the reasons that the insurance regulators have really been struggling with what kind of reporting requirements should we be having in this environment right now where the markets are not anything that we have ever lived with before, not in my lifetime.
- We cannot address or we certainly cannot legislate the confidence in the market.
- We are going to do a lot of cheerleading to do that.