Who Watches the Insurance Regulators?

Daniel Schwarcz:  And I just want to emphasize the way to watch the regulators is to have transparent information so that the public can see what they are doing and can call them on the problems.

  • We do not have that transparency in all of the respects that I talk about in my written testimony.
  • And to me that is the fundamental problem.
    • So the way to do is very simple. Require States to—or have the Federal Insurance Office to disclose this information.  (p23)

2011 0914 - GOV (Senate) - Emerging Issues in Insurance Regulation - Senator Reed - (D-RI) - PDF-51p

Vaughan (NAIC-CEO):  So I have used the phrase sometimes, you know, there is always a question who watches the regulators, and one of the great strengths of our system is that we watch each other.

  • We call each other on the carpet.
  • And that was very effective during the financial crisis when we had—you know, everyone was concerned about a variety of issues, and it was a way to get the right level of communication and coordination across the States around companies that people had questions about.  (p22)

2011 0914 - GOV (Senate) - Emerging Issues in Insurance Regulation - Senator Reed - (D-RI) - PDF-51p