NAIC Agrees with Congressional Committee’s Stance Regarding Sept. 11 Tragedy

The National Association of Insurance Commissioners (NAIC) announced on Sept. 20 it will work collaboratively with Rep. Mike Oxley, chair of the House Financial Services Committee, and other members of the Finance committee in support of the insurance industry impacted by last week’s national tragedy.

“The NAIC welcomes Rep. Oxley’s support and concern regarding the state of the insurance industry following last week’s terrorist attacks,” said NAIC President and Kansas Insurance Commissioner Kathleen Sebelius. “A strong partnership is needed among all regulators and Congressional leaders during this time of national tragedy.” NAIC officers were in contact with Chairmen Oxley and his staff, and Sen. Paul Sarbanes’ banking committee staff, briefing them soon after the tragedy regarding the potential impact on the insurance industry. “We will continue this outreach effort to ensure full communication with Congress,” Sebelius said. “Similarly, we have been in contact with the federal financial services regulators.”

The nation’s insurance commissioners are addressing how to handle legal, market, complaint and claims issues in a uniform and concerted manner. The NAIC’s Financial Analysis Working Group will meet Sept. 21, 2001, to design a consistent and coordinated approach to assessing the financial impact on insurers with possible exposure to losses. And, the NAIC’s International Insurer’s Department (IID) Plan of Operation Review Group and the Reinsurance Task Force met Sept. 18, 2001, to begin discussions of how to best monitor the exposure of foreign insurers and reinsurers.

“In the coming weeks, we will hold weekly conference calls to closely monitor the insurance issues related to these tragic events, as well as to discuss how to best help support and protect consumers in the affected states,” Sebelius added. “In addition, the NAIC plans to host a two-day summit involving regulators, industry representatives, Congressional members and key insurance department staff to discuss in greater depth the related insurance issues.

“Working closely with our partners, we are committed to taking any and all necessary steps to ensure the continued strength and stability of our insurance industry and the nation’s financial markets.”

In a separate release, the announced that NAIC, joining forces in an effort to protect U.S. policyholders, two committees of the National Association of Insurance Commissioners (NAIC) convened recently to discuss next steps in the wake the Sept. 11 terrorist attacks.

During a joint conference call, the NAIC’s International Insurers Department (IID) Plan of Operation Working Group and the Reinsurance Task Force discussed how best to monitor the activities of foreign insurers — notably those engaged in the global system of reinsurance — as their obligations during this recovery period are critical to the financial markets in the U.S.

“We are gathering exposure data from all affected reinsurers,” said NAIC Vice President and Iowa Insurance Commissioner Terri Vaughan. “In particular, we are in contact with Lloyd’s and the London International Underwriting Association (IUA) to gather their exposure data.”

In addition, the NAIC will be contacting German and French regulators and market associations to get a better understanding of their exposure.

“The group will meet again next week via conference call to develop a plan of action based on the information gathered from these sources,” Vaughan said. “Working closely with our partners, we are committed to taking any and all necessary steps to ensure the continued strength and stability of our insurance industry and the nation’s financial markets.”

Topics Reinsurance Market Politics