ACLI - Run
- The year certainly tested the ACLI leadership. Frank Keating, its president and CEO, related the many actions he and his team took to work with federal officials to provide some level of support for affected life companies.
- "The thing that concerned us, because we did not have an FDIC behind us, we have a system of guaranty funds in the states, if there were a run on life insurance companies, what would that do to us as an industry?
- Because we were state-regulated, we were very concerned, if not alarmed, that the Fed, the FDIC, perhaps the SEC, obviously the Treasury Department, might have a high level of ignorance and not appreciate that individual companies within our industry may not be systemic, but we as an industry are."
2009 1026 - InsuranceNewsNet - Relieved to Have Survived a Dangerous Year, ACLI Members Look Ahead, By Ron Panko, senior associate editor, Best's Review - [link]
- (p34) - 1:58:00
- Richard Shelby (R-AL) - Would you discuss the likelihood of a so-called run on insurance products such as life insurance and what such a run would have to look like in order to cause systemic risk?
- Gary Hughes, ACLI - I know one of the dissents to one of the designations pointed out, quite correctly, that insurance regulators have the absolute authority to prevent people from turning in their policies, if that is warranted.
- But I think the experience of the recent economic crisis is very telling in this respect.
- In fact, it was just the opposite of a run.
- The products were so desirable in terms of the guarantees they made that, notwithstanding the crisis, people were holding onto those products no matter what.
2015 0325 - GOV (Senate) - FSOC Accountability Nonbank Designations, Richard Shelby (R-AL) --- [BonkNote]
- For life insurers, the risk of a bank-like “run” resulting from loss of consumer confidence is virtually non-existent.
Life Insurers Do Not Pose a Systemic Risk to the Nation’s Economy, By Dirk Kempthorne,