PCI says it disapproves of a measure that would seek to address systemic risk in the insurance industry by creating a new federal insurance regulation system. The bill, introduced by U.S. Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif., would create an Office of National Insurance within the Treasury Department and allow it to issue federal charters for life, P/C and reinsurance firms. "The reason that discussion of an optional federal charter should not be part of the systemic risk debate is that it falsely presumes that only large companies pose a systemic risk," said PCI CEO David A. Sampson. "In fact, smaller companies can pose significant systemic risk, and larger companies may pose little or none."

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