Stu Testifies Before the U.S. Senate Banking Committee

Stu Henderson, President and CEO of Western National Insurance Group, was recently invited, on behalf of the National Association of Mutual Insurance Companies (NAMIC), to testify before the United States Senate Committee on Banking, Housing, and Urban Affairs at a hearing on the United States—European Union (U.S.–E.U.) Covered Agreement. Accepting the invitation, Stu appeared on Tuesday, May 2 before the Senate Committee in Washington D.C. to give his expert testimony. Stu was among five industry experts invited to make statements and answer questions on the merits and impacts of the U.S.–E.U. Covered Agreement.

 

The U.S.–E.U. Covered Agreement is a draft agreement between the United States and the European Union that sets new mutual

standards on reinsurance, group supervision, and the exchange of insurance information between regulators. However, NAMIC and other industry groups have expressed concern that the agreement in its current form will competitively disadvantage U.S. companies compared to E.U. insurers and reinsurers. Among the reasons for concern are the lack of guaranteed collateral from E.U. reinsurers, the fact that the agreement will lead to federal pre-emption of state laws, and the lack of guarantees from the E.U. regarding continued recognition of the U.S. regulatory structure. Ultimately, NAMIC has stated that they wish members of Congress either secure additional clarity on the agreement or completely renegotiate the deal.

 

At the hearing, Stu spoke in opposition to the agreement. “The appropriate response to this would be for our federal government to strenuously object and demand the mutual recognition of our system of insurance regulation,” said Stu. “Instead, they have attempted to solve this narrow problem, invented by the E.U., and in the process created a whole new set of problems.” Stu commented that U.S. negotiators have only succeeded in creating more uncertainty for U.S. insurers with this agreement, stating that “uncertainty is the enemy of business – and of good government.”

 

For a more detailed look at NAMIC’s position on the U.S.–E.U. Covered Agreement, and for updates on the agreement’s status, click here.

 

Western National Insurance   |  Announce  |  Late Summer 2017 Edition