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NEWS RELEASE 2008
ABA Media Contact: Jonathan Snowling
(202) 663-5468
E-mail: jsnowlin@aba.com
ABIA AND ABA COMMEND PAULSON’S CALL FOR AN OPTIONAL FEDERAL CHARTER FOR INSURANCE
WASHINGTON, March 31 - The American Bankers Insurance Association and American Bankers Association commended Treasury Secretary Henry Paulson's recommendation to create an optional federal charter for insurance as outlined by the Department of Treasury’s Regulatory Blueprint of Financial Regulation. Establishing an optional national insurance charter would increase benefits to consumers, enhance the global competitiveness of the American insurance industry, and bring greater uniformity and effectiveness to the regulatory process.
“The logic of an Optional Federal Charter is compelling, and the value of it has been documented by our dual-banking system,” said Wayne Abernathy executive director for financial institutions and regulatory affairs at the American Bankers Association, who is also a former assistant treasury secretary. “What this measure has really lacked in the past was the strong backing of the executive branch, so today’s endorsement provides a major contribution to the rising tide of support for an OFC.”
“Secretary Paulson has thrown down the marker calling for a national discussion that recognizes the urgency and value of this much needed reform,” said Kevin McKechnie executive director of ABIA. “This long overdue measure would create greater efficiency and modernization for the insurance regulatory system.”
Under current law, insurance providers must follow differing—sometimes conflicting—regulations in each state in which they operate. Insurers face obstacles such as inconsistent regulations, barriers to innovation, conflicting agent licensing and education requirements, among others. All of these factors drive up the price of products and slow down innovation and delivery of new products to consumers.
ABIA and ABA are members of the Optional Federal Charter Coalition. The OFCC represents a large coalition of trade associations united to promote a modernized insurance regulatory system. For more information on the OFCC please visit their web site at www.OFCcoalition.com.
The ABIA was created in 2001 through the combination of the American Bankers Association Insurance Association and the Association of Banks-in-Insurance. ABIA is a separately chartered affiliate of the American Bankers Association and is the only Washington, D.C. based full-service association for bank-insurance interests. ABIA can be found on the Internet at http://www.theabia.com.
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