A brave new world for insurance companies

July 2009
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A brave new world for insurance companies

At a glance

Federal oversight and banking regulation - two generational changes to consider

The insurance industry is on the cusp of potential regulatory change that may have far-reaching effects. While several attempts have been made in recent years to move toward a framework with more federal regulation, the current degree of focus on the topic is unprecedented. The details of the final structure are far from certain. However, whatever the final outcome, the regulatory landscape will be a significant departure from the current structure.

Unlike banking institutions, many of which have been subject to federal oversight for many years due to their bank holding company (BHC) status, many insurance companies will find it necessary to augment their compliance and risk functions to meet the expectations of federal regulators.