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PIA Praises Secretary Mnuchin’s Comments on International Capital Standards

His comments affirmed the Treasury Department’s support for state-based insurance regulation.
May 16, 2019

WASHINGTON — The National Association of Professional Insurance Agents (PIA National) was pleased to hear Treasury Secretary Steve Mnuchin request that an international group, the International Association of Insurance Supervisors (IAIS), which is drafting an international insurance capital standard, devote greater energy to developing a version of the standard that will be suitable for the United States, where states primarily regulate the insurance industry.

Mnuchin spoke at an event held by the National Association of Insurance Commissioners (NAIC), a group for state insurance regulators. He said that the Treasury Department is trying to modify the standard to make it a better fit for the U.S. state-based system of insurance regulation. His comments affirmed the Treasury Department’s support for state-based insurance regulation. Mnuchin said that the final international capital standard should “recognize and accommodate” the variety of methods used for solvency regulation around the world, including the U.S. system.

“PIA is heartened to hear Secretary Mnuchin state specifically that the Treasury Department supports the U.S. system of state-based insurance regulation and wants international insurance capital standards to recognize and accommodate our system,” said PIA National Counsel and Director of Regulatory Affairs Lauren G. Pachman, Esq.

While the final standard will not be enforceable against the United States, Mnuchin said that its adoption by other countries could affect U.S. carriers operating internationally and even those that only operate in the U.S.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes, and businesses. PIA members are Local Agents Serving Main Street America SM.PIA’s web address is www.pianet.com.