Very few insurance companies have solvency issues since conservative state regulation has not allowed them to engage in the risky investments /practices that fed regulated banks,investments banks etc. have done to create this problem. Fed regulators should spend their time cleaning up the problems they are responsible for allowing rather than meddling in the insurance industry where there is really no problem. It was not AIG’s ins co.’s that are problems;only their non-insurance operations.
Well, the NAIC, PIA & Big I are doing something to keep the Feds from becoming “our mother” on this issue. We do have the backing of most of the commissioners and various insurance associations trying to put a stop to Fed regulation of our business. Let’s just hope that those goofs back in DC listen to them!
Soon everything will morf into One Single Insurance company, we will all work for the same company. Then there will only be One Single Bank for all of us to deposit our money into, borrow from for cars, mortgages, etc. What a world !
Yea that just what we need . It is time for us to put back up the fire walls folks or our industry will go down the tubes .
This is what Deregulation has brought us.
AIG and wallstreet may just bring us down with it if we don’t get the laws changed back soon.
I’ve finally figured it out! The “government” can do anything simply by using the right words or printing up enough money. For example, they call taking money from some people (under the threat of violence) and giving it to other people a “rescue of the economy.” They allowed people to buy three times as much house as they could afford by printing enough currency. Surely, they can wave a magic wand and give us everything we need and want? After all, isn’t government something that is apart and separate from the rest of society? Something that intervenes only to make things run more smoothly without any self interest or flaw on its part? Isn’t government like…well, God?
(Disclaimer: this post was written in sarcasm. Yes, there are people who think that government is God. There are people who think that government is actually something more than individual men and women. Who think that when an individual man or woman steals, it’s wrong but when that man or woman is a “government employee” it’s O.K. These people get their view of reality from TV and have an attention span of about five seconds)
Are they nuts! I guess so – bailing out AIG is one thing and those Banks but please, the Insurance Carriers – may as well kiss it all good-bye! Get real for once in your life!!
What the heck is she talking about? “Bair said the FDIC could start providing guarantees for insurance companies, much like it already guarantees the deposits of most U.S. banks…”
Providing what guarantees to insurance companies? Does she comprehend what insurance companies do? The FDIC guarantees depositors that their money will be there, up to a certain limit, if the bank goes under. So, the FDIC will be a reinsurer for all insurance companies? How is that regulating the insurance industry?
The fact that AIG insurance companies are remaining solvent in the states is only because the Federal Government has not been involved. We need insurance commissioners in states protecting states rights and state residents rights. Besides, the FDIC and all of that regulation has certainly passed the WASL on consumer protection now haven’t they.
Yes, we can sit around and point the finger at the problems we are in and that the Fed’s have been apart of getting us into our current situation. However, the only way we can stop them from sneaking their hand into insurance is to keep the phones ringing and mail bags full. If all thoes that have responded to this article have not gotten on the phone to their senate/congress representatives, then they are just blowing smoke. In an effort to keep our business out of Federal Regulation please make the calls and send the letters. Especially thoes that have replied to this article and have not done so.
I don’t care if the Feds take over regulating insurance or not, but to insert a little clarity the FDIC has been doing its job rather well. That particular institution is not the one screwing up the banks as they do not regulate derivatives. The FDIC goes along quietly doing what it’s supposed to. Now the SEC on the other hand…
One thing I learned at a conference last week struck home on this.
The states have done a wonderful job of maintaining solvency of insurance companies.
AIG has been brought down by something that occurred primarily in a single subsidiary in London. There were NO regulators anywhere minding the store over that. The state regulators do not look past the annual report the insurance companies give them.
Because of the fluid nature of financial companies, there now exists the ability for activities totally unrelated to insurance to force the insolvency of insurance companies, and no one is regulating that portion of the equation.
I am totally against fed involvement, but sort of understand what they are saying now.
Very few insurance companies have solvency issues since conservative state regulation has not allowed them to engage in the risky investments /practices that fed regulated banks,investments banks etc. have done to create this problem. Fed regulators should spend their time cleaning up the problems they are responsible for allowing rather than meddling in the insurance industry where there is really no problem. It was not AIG’s ins co.’s that are problems;only their non-insurance operations.
Well, the NAIC, PIA & Big I are doing something to keep the Feds from becoming “our mother” on this issue. We do have the backing of most of the commissioners and various insurance associations trying to put a stop to Fed regulation of our business. Let’s just hope that those goofs back in DC listen to them!
for doing such a nice job with banks.
Can you imagine how screwed up the insurance industry could become under Fed regulation?
what a bunch of communists
The Federal Gov’t can’t even keep Flood Insurance running smoothly and they want to regulate the Insurance companies. Ha, that’s funny!!!!
Hey, why not? The Feds have done such a great job with the banking industry..
Come on now.
This is the new America! Our Government is here to take care of and to protect everyone.
All we need to do is trust the Feds.
Soon everything will morf into One Single Insurance company, we will all work for the same company. Then there will only be One Single Bank for all of us to deposit our money into, borrow from for cars, mortgages, etc. What a world !
Do you think I should start exchanging my US dollars for the new World Eurodollar? I want a good exchange rate.
Why not ? The Gov did such a great job with the savings and loan, oh wait what about the mess we are in now.
Yea that just what we need . It is time for us to put back up the fire walls folks or our industry will go down the tubes .
This is what Deregulation has brought us.
AIG and wallstreet may just bring us down with it if we don’t get the laws changed back soon.
I’ve finally figured it out! The “government” can do anything simply by using the right words or printing up enough money. For example, they call taking money from some people (under the threat of violence) and giving it to other people a “rescue of the economy.” They allowed people to buy three times as much house as they could afford by printing enough currency. Surely, they can wave a magic wand and give us everything we need and want? After all, isn’t government something that is apart and separate from the rest of society? Something that intervenes only to make things run more smoothly without any self interest or flaw on its part? Isn’t government like…well, God?
(Disclaimer: this post was written in sarcasm. Yes, there are people who think that government is God. There are people who think that government is actually something more than individual men and women. Who think that when an individual man or woman steals, it’s wrong but when that man or woman is a “government employee” it’s O.K. These people get their view of reality from TV and have an attention span of about five seconds)
Are they nuts! I guess so – bailing out AIG is one thing and those Banks but please, the Insurance Carriers – may as well kiss it all good-bye! Get real for once in your life!!
What the heck is she talking about? “Bair said the FDIC could start providing guarantees for insurance companies, much like it already guarantees the deposits of most U.S. banks…”
Providing what guarantees to insurance companies? Does she comprehend what insurance companies do? The FDIC guarantees depositors that their money will be there, up to a certain limit, if the bank goes under. So, the FDIC will be a reinsurer for all insurance companies? How is that regulating the insurance industry?
The fact that AIG insurance companies are remaining solvent in the states is only because the Federal Government has not been involved. We need insurance commissioners in states protecting states rights and state residents rights. Besides, the FDIC and all of that regulation has certainly passed the WASL on consumer protection now haven’t they.
Yes, we can sit around and point the finger at the problems we are in and that the Fed’s have been apart of getting us into our current situation. However, the only way we can stop them from sneaking their hand into insurance is to keep the phones ringing and mail bags full. If all thoes that have responded to this article have not gotten on the phone to their senate/congress representatives, then they are just blowing smoke. In an effort to keep our business out of Federal Regulation please make the calls and send the letters. Especially thoes that have replied to this article and have not done so.
I don’t care if the Feds take over regulating insurance or not, but to insert a little clarity the FDIC has been doing its job rather well. That particular institution is not the one screwing up the banks as they do not regulate derivatives. The FDIC goes along quietly doing what it’s supposed to. Now the SEC on the other hand…
One thing I learned at a conference last week struck home on this.
The states have done a wonderful job of maintaining solvency of insurance companies.
AIG has been brought down by something that occurred primarily in a single subsidiary in London. There were NO regulators anywhere minding the store over that. The state regulators do not look past the annual report the insurance companies give them.
Because of the fluid nature of financial companies, there now exists the ability for activities totally unrelated to insurance to force the insolvency of insurance companies, and no one is regulating that portion of the equation.
I am totally against fed involvement, but sort of understand what they are saying now.