Insurer groups voice concern about FSOC rule

04/15/2012 | Business Insurance (tiered subscription model)

Insurer groups are raising concerns about the final rule by the Financial Stability Oversight Council for determining whether insurers and other nonbank financial institutions pose systemic risk to the economy. The designation could be a "scarlet letter" or imply a federal backstop, says Ben McKay of the Property Casualty Insurers Association of America. The Group of 20's Financial Stability Board also is expected by year-end to issue guidelines for identifying carriers that pose systemic risk. "There's a lot of concern about what it means to be on each and what it would mean if you're on one and not the other," McKay said, adding that the preferable solution is for the U.S. to "push its regulations out to the world."

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