Wednesday, June 17, 2009
The Obama administration will unveil its plan to overhaul financial regulation later today. Latest reports suggest that the plan includes proposals to create an Office of National Insurance within the Treasury department, but stops short of federal regulation of the insurance industry. According to a June 16 Reuters article by Kevin Drawbaugh and Patrick Rucker, The Office of National Insurance would monitor the industry and advise on policy issues. The office could also recommend to the Federal Reserve that large insurers be subject to strict capital and risk rules that would apply to large financial holding companies under other aspects of the Obama plan, according to Reuters. Legislation to create a federal office of insurance information was recently reintroduced in the House by Rep. Paul Kanjorski, D-PA. Check out I.I.I. information on regulatory modernization.