2008-3, NAIC Proc. - 2008 0922 - NAIC Proceedings - 2008 Fall National Meeting - National Association of Insurance Commissioners - September 22, 2008
(p1-9) - PRESIDENTIAL ADDRESS - Given at Executive (EX) Committee Meeting Sandy Praeger, NAIC President
It has been a long week—a lot of hard-won battles.
Of course, I am talking about AIG.
It was a war on many fronts—the battle to ensure that the solvent, strong insurance subsidiaries wouldn't become collateral to the financial missteps of the parent holding company.
This week we mobilized to ensure that policyholders of the insurance subsidiaries remained protected.
We actively participated and aided the efforts to shore up the federally regulated portions of AIG that were under intense stress.
Insurance regulators from every state—under the leadership of New York State Superintendent Eric Dinallo and Pennsylvania Insurance Commissioner Joel Ario—have been involved in every step of this process...
Remember: The reason for the financial difficulties at AIG was the lack of understanding—through lack of transparency—by the financial holding company regarding the financial instruments it had purchased.
State insurance regulators also suggest that federal banking regulators look to state insurance regulation regarding, among other things, restrictions on derivative activities; limits on high concentrations in investment types; and appropriate minimum capital and surplus requirements.