Michael McRaith

  • 2005-2011 - Illinois Insurance Commissioner - 3/21/2005 - 6/1/2011
  • 2011-? - FIO - Director, Federal Insurance Office
  • BlackRock
  • 2009 0317 - GOV (Senate) - Perspectives on Modernizing Insurance Regulation - [PDF-160p
    • Michael McRaith - 14p
  • 2009 04 - GOV (Senate - Aging) - Betting on Death in the Life Settlement Market: What's at Stake for Seniors? - [PDF-315p,
  • Insurance and Systemic Risk), Paul Kanjorski (D-PA)  ---  [BonkNote]
    • NAIC - Michael T. McRaith, Director, Illinois Department of Insurance -16p
  • 2013 0613 - GOV (House) - The Impact of International Regulatory Standards on the Competitiveness on US Insurers - [PDF-164p.
  • 2014 0204 - GOV - The Federal Insurance Office’s Report on Modernizing [PDF - 214p
    • Mcraith, Leonardi, Ben Nelson, Gary Hughes
  • 2017 0216 - GOV (House) - Assessing the U.S.-E.U. Covered Agreement - [PDF-115p
  • 2021 - IAIS - IAIS Virtual Annual Conference 2021 - Global Monitoring Exercise panel. Birny Birnbaum (CEJ), Michael McRaith [PE-Private Equity - [VIDEO-YouTube]
  • 2010 0127 - GOV (House-OGR) - The Federal Bailout AIG, Edolphus Towns (D-NY)  ---  [BonkNote] 
  • Cliff STEARNS (R-FL).
    • Now, recently Michael McRaith, who is director of the National Association of Insurance Commissioners, told the Senate Banking Committee, he said, you know, if AIG had gone in bankruptcy, we would have taken care of it.
    • It would have been an orderly disposition. This is what he said: ‘‘AIG’s insurance operations and their other companies would have simply—we would have simply bought up AIG’s insurance assets, allowing a seamless delivery of AIG’s insurance obligations.’’
    • So the question is, considering that the State Insurance Commissions would likely have seized AIG’s insurance subsidiaries, protected policyholders in an AIG bankruptcy, why was it necessary to bail out AIG with taxpayers’ money, based upon the testimony of the director of the National Association of Insurance Commissioners?
  • Mr. PAULSON. I respectfully disagree with him, and I believe that it is——
  • Mr. STEARNS.
    • So you disagree with this guy, with all his knowledge, his years of experience?
  • Mr. PAULSON.
    • I will just say many people with years of experience had some regulatory responsibilities with regard to AIG, but this company was had a huge problem, and it is case No. 1 on what is wrong with our regulatory system.
    • There was no single regulator that had a line of sight on the total company.
    • So there were regulators that looked at different pieces of it, and if the company had gone down, it would have been a huge mess. (p152)
  • (p5) - To be clear, though, the business of life insurance, in and of itself, does not pose systemic risk to the broader economy or the U.S. financial system.  
  • (p6) - As a factual matter, that source will clarify that the vast majority of insurance does not impose systemic risk. 

--  Michael T. McRaith, Director of Insurance - State of Illinois, On Behalf of the National Association of Insurance Commissioners 

Insurance and Systemic Risk), Paul Kanjorski (D-PA)  ---  [BonkNote]

  • Testimony - Michael T. McRaith - Systemic Risk and Insurance - 16p
  • 2015 0429 - GOV (House) - The Impact of International Regulatory Standards -  [PDF-125p, part 1 - VIDEO-youtube , Part 2 - VIDEO-youtube] 
  • (p16) - Lynn WESTMORELAND (R-GA):  What business do you have telling other countries how to regulate when you don’t have any regulation over 99 percent of the insurance companies here?
  • Michael MCRAITH (Director of FIO) - It is important to understand that the international standard-setting process is very much a global and consensus-driven process.
    • The State regulators are, of course, very involved, and the Federal Reserve.
    • It is consensus-driven.
    • The goals are to promote financial stability globally.
    • As we learned through the crisis, national economies around the globe are connected and affect one another.
  • Mr. WESTMORELAND. Are any of these companies SIFIs?
    • Are they a problem?
    • Are they a threat to our economy?
  • Mr. MCRAITH. Forgive me, Congressman, I am not sure I understand your question.
  • Mr. WESTMORELAND. You are talking about financial stability, worldwide financial stability.
    • How do these insurance companies play into that?
    • They are not banks.
  • Mr. MCRAITH. That is correct. Insurance companies are very significant participants in global and national capital markets.
    • They are essential participants in financial services.
    • The firms that are looked at for global purposes are firms that are massive, complex, sophisticated enterprises that are engaged in a variety of financial activities around the world.
  • (p41) - Michael McRaith: NAIC / Director, Illinois Department of Insurance, on behalf of The National Association of Insurance Commissioners (NAIC)
    • May I add to that?
    • The ultimate consumer protection, Congressman, is when your constituent pays a premium and doesn’t have a claim for several years, that the company is not only around to answer the telephone, but is able financially to pay the claim.
    • Reinsurance is an essential part of solvency, and solvency is the core mission, core purpose, of consumer protection in each State.
      • And for that reason, it is appropriately a subject for State based regulation.  

Insurance and Systemic Risk), Paul Kanjorski (D-PA)  ---  [BonkNote]

  • Randy Neugebauer (R-TX):  I want to go back to one of the things that seems to be a common theme, and I do not want to put words in people's mouth, but that the credit scores are used in part of the underwriting process.
    • What is not standardized is some companies put more weight on that credit score than others.
  • Michael MCRAITH (NAIC / Director, Illinois Department of Insurance: Absolutely. The one example that I recall, Congressman, is several years ago, there were life insurance companies charging higher premiums to African-American enrollees because their life expectancy was shorter.
    • The country and States determined that was inappropriate.
    • I am not disagreeing with you.
      • I think we want companies to be accurately pricing their products and financially strong.
      • All I am pointing out is that actuarial justification in and of itself is not sufficient.

2010 0512 - GOV (House) - Use of Credit Information Beyond Lending: Issues and Reform Proposals - [PDF-263p, VIDEO-CSPAN]