I heard an interview with Dinallo on the radio after he testified before Congress. I hope that lawmakers were listening because he emphasized that his department regulates the insurance market very closely such that it is well reserved and capitalized but that AIG’s epxansion into other markets meant that his regulatory authority was avoided; he also pointed out that the OTS was not/is not prepared to oversee its sphere of influence because of a lack of expertise. This was the clearest voice I have heard yet, that Congress’s attempts to increase federal jurisdiction over insurance is not only unnecessary but unwise. Like the pending multiple peril insurance bill, federal regulation of insurance is a solution looking for a problem. Not only is state regulation is stable, well-maintained, adequately reserved and capitalized but it demonstrates that insurance has not been involved in any of this financial mess we see. It is just that AIG started as a P/C carrier which gives everyone the impression that an insurance company is swallowing up all these govermment funds. I have a new respect for Dinallo and very little left for stupid lawmakers who can’t get anything right but headlines!
I heard an interview with Dinallo on the radio after he testified before Congress. I hope that lawmakers were listening because he emphasized that his department regulates the insurance market very closely such that it is well reserved and capitalized but that AIG’s epxansion into other markets meant that his regulatory authority was avoided; he also pointed out that the OTS was not/is not prepared to oversee its sphere of influence because of a lack of expertise. This was the clearest voice I have heard yet, that Congress’s attempts to increase federal jurisdiction over insurance is not only unnecessary but unwise. Like the pending multiple peril insurance bill, federal regulation of insurance is a solution looking for a problem. Not only is state regulation is stable, well-maintained, adequately reserved and capitalized but it demonstrates that insurance has not been involved in any of this financial mess we see. It is just that AIG started as a P/C carrier which gives everyone the impression that an insurance company is swallowing up all these govermment funds. I have a new respect for Dinallo and very little left for stupid lawmakers who can’t get anything right but headlines!