Tag Archives: Dodd-Frank Act

State insurance regulators may flex muscles amid federal rollback

Talk of a lighter regulatory touch out of Washington has many in the financial services industry feeling optimistic; but for insurers, there may be reason to be wary of the ‘law of erin-borchard-list-of-functional-exercises-LIaJas-clipartunintended consequences.’

A potential repeal, or rollback, of the Dodd-Frank Act may seem like a step toward lower regulatory burden, but in reality, only a handful of insurers — those designated as systemically important financial institutions (SIFIs), and those that own a depository institution — would feel its impact.

While few insurers are directly affected by the federal bodies established by Dodd-Frank — notably the Financial Stability Oversight Council (FSOC) and Federal Insurance Office — they are all regulated by the states, which have historically taken the lead on overseeing the insurance industry.

Continue Reading “State insurance regulators may flex muscles amid federal rollback” at The Hill

Transatlantic Insurance Talks Continue as U.S. Industry Signals Frustration With EU

Regulators from the European Union and United States met in Brussels this week to continue talks on aligning their insurance regulations amid growing 14325899679_179347cec0_bconcerns from a key U.S. industry group that says implementing the new rules will hurt their members doing business in Europe.

A joint EU-U.S. statement that the Treasury Department released Thursday said talks took place on July 25 and July 26 for a “covered agreement” on insurance and reinsurance issues.

The two economies are holding the talks, authorized by the 2010 Dodd-Frank Act, in large part because of a new EU regulation that establishes rules on reinsurance supervision and collateral requirements.

The substantive issues negotiators discussed were identical to the last round of talks in May, and they included reinsurance collateral.

Continue reading “Transatlantic Insurance Talks Continue as U.S. Industry Signals Frustration With EU” at Morning Consult News

AIA Applauds Launch of Covered Agreement Negotiations by U.S. Treasury and USTR

Washington, DC (WorkersCompensation.com) – The American Insurance Association (AIA) is applauding the announced launch of negotiations between the United States and the European Commission toward a “covered agreement” on insurance prudential matters.applause_sign_rect

Under the Dodd-Frank Act (DFA), the Treasury Department and the U.S. Trade Representative (USTR) are authorized to enter into a covered agreement with foreign countries to establish mutually agreeable protocols and requirements governing the treatment of insurance prudential matters.

AIA views the negotiations as necessary ensuring that Solvency II implementation does not result in discrimination against U.S. insurers that also conduct business in the EU.

Continue Reading “AIA Applauds Launch of Covered Agreement Negotiations by U.S. Treasury and USTR” at Workers Compensation News

US to commence negotiations with the EU for a “covered agreement” for reinsurance collateral

On November 20, 2015, the US Department of the Treasury (“US Treasury”) and the US Trade Representative (“USTR”) sent letters to the Financial Services and Ways and Means Committees of the US House of Representatives and the Banking, Housing, and secure_loanUrban Affairs and Finance Committees of the US Senate to notify the Committees that the US Treasury and USTR intend to commence negotiations for a “covered agreement” with the European Union.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) of 2010 gives the US Treasury and the USTR the authority to negotiate covered agreements — i.e., bilateral or multilateral agreements regarding prudential measures with respect to insurance or reinsurance with foreign governments, authorities or regulatory entities.

In the November 20th letters, the US Treasury and USTR stated that the covered agreement negotiations with the European Union will…

Continue Reading “US to commence negotiations with the EU for a “covered agreement” for reinsurance collateral” at Lexology

Survey: 30% of Insurers Concerned About Legacy Systems’ Future

Nearly 30% of senior investment managers at global insurance companies say they are concerned about the ability of their130807_concerned current legacy systems to meet their future regulatory requirements, according to a recent survey by Northern Trust. The study highlights the challenges insurance companies face with complying with the Dodd-Frank Act in the U.S. and the Solvency II directive in Europe.

Northern Trust surveyed more than 250 senior investment managers at global insurance companies with more than $1 billion in assets in the U.S. and Europe.

The survey asked how insurance companies are currently managing their investment operations infrastructure, and what they expect will be the best way to meet future needs, particularly in an era of regulatory change and financial pressure.

Continue Reading “Survey: 30% of Insurers Concerned About Legacy Systems’ Future” at Property Casualty 360 News

Risk Managers Fear Impact of Regulation

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Drowning in expenses and paperwork, buyside groups are struggling to comply with the arrival of an onslaught of regulations from the Dodd Frank Act in the US to Solvency II in Europe, according to a new survey.

Attempting to meet the capital and risk requirements these rules impose inflates business costs and wastes time, a study from US software group SunGard APT and the Professional Risk Managers’ International Association reveals.

Continue Reading “Risk Managers Fear Impact of Regulation” at Financial Times News