Banks and Insurance

  • Assimilation of banking-type activities by life insurers appears to be the key systemic vulnerability.

2003 - IMF - Insurance and issues in financial soundness. IMF working paper 03/138. Das U, Davies N, Podpiera R - 44p

  • (p536) - The Subgroup also found that the remaining Federal Reserve risk categories for banking organizations – liquidity, operational, legal and reputational – encompass similar underlying concepts of risks associated with insurance operations, but that such risks are viewed somewhat differently in the context of the organization and management of the business operations of banks and insurance companies.
  • From the array of risks identified, however, the Subgroup determined that some insurance risks were exclusive to particular insurance products and were therefore not comparable to banking risks.
  • (p537) - 1. Mapping of Life Insurance Company Risks

2003-3, NAIC Proceedings - Financial Condition (E) Committee 

  • 2013 1212 - GOV (House) - International Finance System, Part 1 (CSPAN) 
    • [PDF- , VIDEO-CSPAN]
    • 01:10:00 - Neugebauer / Lew - FIO, Late Reports, McRaith, FSOC, Banking vs Insurance, US v Europe, Complicated issue, states, feds, opening the conversation, G-20, Capital Standards
    • 01:19:00 - Bill Foster (D-IL) - Banking Capital Standards to Insurance, FSOC
  • 1990 - LR - Dual Banking and State Bank Insurance Powers: Diversifying Financial Services Through the Back Door, by Michael E. Schrader - 21p
    • This conclusion is based on an analysis of Federal Reserve Board orders involving applications by Citicorp 16 and Merchants National Corp. 17 to engage in insurance activities through state-chartered banks, as well as from an overview of the District of Columbia Circuit Court of Appeal's AMBAC decision and the Federal Reserve Board's proposed regulatory response.19
  • 1992 - LR - Banking and Insurance - Should Ever the Twain Meet?, by Emeric Fischer - 101p
    • The huge amount of resource material furnished by Gary E. Hughes, Chief Counsel, Securities of the American Council of Life Insurance has made this study far more meaningful.
  • 1996 - LC - Barnett Bank of Marion Cty., N. A. v. Nelson, 517 U.S. 25
  • 1997 - SOA - The Role of Banks in Insurance Markets, Society of Actuaries - 25p
  • (p27) - Life insurers are distinct from banks in terms of their fundamental business model, their financial structure, and their regulatory oversight.
    • And a one-size-fits-all approach to rulemaking will not produce workable results.

--  Statement of Gary E. Hughes, ACLI - Executive Vice President & General Counsel, American Council of Life Insurers

2011 0728 and 1025 - GOV (House) - Insurance Oversight: Policy Implications for U.S. Consumers, Businesses and Jobs - Part 1 2011 0728), Part 2 ( 20111025) - [PDF-285p,

  • … the life insurance industry has developed new products that contain predominantly investment features similar to those offered by depository institutions.  (p93)

--  William S. McKee, Tax Legislative Counsel, Department of the Treasury [DOTT]

1983 0311 - GOV (Senate - Committee on Finance) - Taxation of Financial Services Industry (HRG98) - [PDF-356p, VIDEO-?]

 
 
  • GLB
  • Deregulation
  • New York
    • Cuomo
    • Dewind Commission
      • chairman, Adrian W. DeWind, a New York lawyer,
  • INIA welcomes the statement in Annex 1 that “Not all resolution powers set out in the Key Attributes are suitable for all sectors and all circumstances”.
  • However, there seems to be a contradiction between this statement and the fact that in very few instances throughout the document is the recognition that the framework and tools set out for effective resolution of financial groups will properly account for the differences between the banking and insurance business models.

2011 0902 - INIA (International Network of Insurance Associations) Letter to FSB - 4p

  • comments on the FSB consultation paper "Effective Resolution of Systemically Important Financial Institutions
  • Failures in our economic system perform the essential function of weeding out uncompetitive enterprises, but insurance is, in a way, like banking.  

--  Dr. William Freund, NYSE professor of economics at the Graduate School of Business of Pace University in New York

1991 - SOA - Major Issues Facing the Economy, The Insurance Industry and Actuaries in the Years Ahead, Society of Actuaries, Moderator Daphne Bartlett  -  12p  

  • When Congress passed the McFaddin Act in 1927, it "leveled the playing field" by reducing restrictions on bank activities in other lines of commerce and that disastrous results ensued. (p72)

--  Daniel Murphy, Executive Vice-President, E.F. Hutton

1984-2, NAIC Proceedings - Integrated Financial Services (EX) Task Force