“Why go from a system that works to one that has failed”
WASHINGTON, Sept. 11, 2013 /PRNewswire-USNewswire/ — The National Association of Professional Insurance Agents (PIA) is applauding Connecticut Insurance Department Commissioner Thomas B. Leonardi for his strong public response in opposition to a recent report released by the G-20’s Financial Stability Board, which called for the U.S. to move toward a federally regulated system for insurance.
Leonardi, who is chair of the International Insurance Relations Committee of the National Association of Insurance Commissioners (NAIC), said that during the economic crisis of 2008 federal regulation failed and state insurance regulation worked. “Why go from a system that works and go to one that has failed? It is totally illogical,” Leonardi said in published reports. “You have people from the European Union trying to analyze the U.S. That is like a Yankee fan selected to judge the Red Sox.”
“PIA commends Commissioner Leonardi’s support for a state-regulated insurance system,” said PIA National President Andrew C. Harris. “As the Government Accountability Office (GAO) recently reported, the state insurance regulatory system worked to help mitigate the negative effects of the financial crisis on the insurance industry and state regulators were especially critical in maintaining general stability in the market during the crisis.”
“While the funding of insurable risk may benefit from global cooperation, the risks that are being insured will always be local,” Harris said. “The United States has an effective and efficient insurance regulatory system that protects policyholders and offers them a broad array of competitive choices from many insurance carriers. It also protects the global economy. Our state-based system is far superior to the federalized system that our European Union friends have seen fit to recommend to us. We disagree. Instead, they would benefit by emulating our system. Ours is better.”
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. Visit PIA here.