U.S. Sen. Sherrod Brown (D-OH) is urging key insurance industry leaders to consider the growing role of private equity in the insurance industry.
Brown recently sent letters to the leaders of the Treasury Federal Insurance Office (FIO) and the National Association of Insurance Commissioners (NAIC), encouraging them to continue their analysis of changes in the insurance industry to ensure policyholders are protected from the consequences of excessive risk-taking.
“FIO should work to examine the growth of offshore reinsurance markets and increased risk-taking behavior across the life insurance industry, which could contribute to increased systemic risk across the financial system,” wrote Brown to Steven Seitz, the director at FIO. “I look forward to discussing these issues, and broader insurance industry matters at an upcoming hearing before the Committee on Banking, Housing, and Urban Affairs.”
These letters follow up on correspondences that Brown sent earlier this year to both FIO and NAIC, both of which said his inquiry would be fully considered.
“State insurance regulators are fully capable of assessing and managing the risks of these insurers, and there is nothing PE firms add to the playing field that changes this fact. It should provide you and the public comfort to know the state insurance regulatory system has already been working on many of the concerns that you and others have highlighted, and we possess the tools and resources to address these issues. State insurance regulation is constantly evolving and improving to ensure that the public trust in the insurance industry is well placed and secure,” NAIC Director Dean Cameron responded to the initial inquiry.
Brown is the chair of the U.S. Senate Committee on Banking, Housing, and Urban Affairs.