Deloitte: States Could Fill Regulatory Breach
The move by Congress and the Trump administration to reduce regulatory oversight at the federal level and the possible repeal of the Dodd-Frank law could lead states to increase their own regulatory efforts.
Deloitte Services LP Global Insurance Regulatory Leader Howard Mills saysin an opinion piece this could include the adoption of a framework for the supervision of insurance groups by the National Association of Insurance Commissioners (NAIC). Group supervision would allow for greater oversight of U.S.-based insurers with subsidiaries overseas, which would subject insurers to substantial reporting requirements, licensing oversight and financial analysis if more states formalize the group supervision framework into law. Another issue that could gain traction is cyber regulation, with the New York State Department of Financial Services being the first to unveil a proposed cybersecurity regulation.
“While 2017 may bring a lighter regulatory touch from the federal government, it may also herald a heavier regulatory hand from the states,” said Mills, a former New York superintendent of insurance. “Despite discussion of regulatory relief under the new administration, insurers will continue to face a very challenging regulatory landscape and a potentially uneven marketplace across states.”