Eyes

Terri Vaughan (NAIC CEO):  So it is a very collaborative system, and I will say it has not always been that way.

  • This is something that has taken us years to get to.
  • And the NAIC has staff support that helps to make sure that that collaboration occurs when it needs to occur.

2011 0914 - GOV (Senate) - Emerging Issues in Insurance Regulation - Congressman Reed (RI) - [PDF-51p]

  • 199x - GOV - Executive Life - Minnesota / California
  • GOV - Michael Mcraith
  • State insurance regulators recognize that Federal action is needed to address systemic risk, but the solution should be a collaborative one that builds on the strength of State regulation (multiple eyes on any problem) by adding the eyes of other functional regulators in a transparent structure that holds all functional regulators accountable and does not compromise one company within the enterprise for the benefit of another.
  • Such a structure would give us, as State regulators, the ability to do what we do best, protect the insurance buying public.

-- Testimony of the Honorable Joel Ario, Insurance Commissioner, Pennsylvania Insurance Department, on Behalf of the National Association of Insurance Commissioners

2009 0318 - GOV (House) - American International Group's Impact on The Global Economy: Before, During, And After Federal Intervention  - aka Federal Aid to AIG Insurance - [PDF-380p, VIDEO-CSPAN]

Mary A. Weiss, Deaver Professor of Risk, Insurance, and Healthcare Management, Temple University

  • And it would be sort of an example of what happens at the NAIC.
  • The more eyes you have looking at a problem, the more likely you are to see a problem when it arises.

2011 0914 - GOV (Senate) - Emerging Issues in Insurance Regulation - Congressman Reed (RI) - [PDF-51p]

Chairman KANJORSKI (D-PA).  The thing that disturbs me is trying to get my arms around the idea of just what is a ‘‘systemic risk.’

’ ...if people could have rapidly seen systemic risk would have occurred.

  • We certainly have enough regulators who had eyes on the situation.
  • We have all talked about it, I can assure you, and we have heard you.
  • I think when the question came up in 1964, Justice Potter Stewart, in trying to explain what was ‘‘obscene,’’ he said the following, ‘‘I shall not today attempt further to define the kinds of materials I understand to be embraced, but I know it when I see it.’’
  • I think probably with systemic risk, after the fact, we seem to all know it when we see it, but before it arrives, we have no idea.
  • If you make the proper conclusions, we would not be in the crisis we are in today, if people could have rapidly seen systemic risk would have occurred.
  • We certainly have enough regulators who had eyes on the situation.
  • They just were not analyzing or seeing the situation.  (p19)

2009 0305 - GOV (House) - Perspectives on Systemic Risk - [PDF-254p]