December 05, 2024

Scott Praises IAIS Decision to Recognize U.S. State-Based Insurance Regulation System

Washington, D.C. – Today, Ranking Member Tim Scott (R-S.C.) praised the International Association of Insurance Supervisors (IAIS) decision to protect the U.S. state-based insurance regulatory system and recognize existing capital requirement models as comparable to international standards. A former insurance agent, Ranking Member Scott has called for this recognition since November 2019.

“The U.S. state-based insurance regulation system has resulted in highly competitive, fair markets across the country for decades and our state insurance regulators – not bureaucrats in Washington or international bodies – are best positioned to oversee insurers and safeguard the interests of consumers. After over five years of pushing the International Association of Insurance Supervisors to recognize our system as comparable to the Insurance Capital Standard, I’m thrilled to see an outcome that will protect American insurers and consumers,” said Ranking Member Scott.

BACKGROUND:

In November 2019, Ranking Member Scott led 29 of his colleagues in a bipartisan letter to then-U.S. Treasury Secretary Steven Mnuchin, urging U.S. representatives at the International Association of Insurance Supervisors to seek a clear pathway to formal recognition of the U.S. insurance regulatory system as “comparable” or “outcome equivalent” to the Insurance Capital Standard (ICS).

The letter followed a September 2019 Senate Banking Committee hearing on “Developments in Global Insurance Regulatory and Supervisory Forums,” where Ranking Member Scott urged U.S. representatives to reject adoption of the Insurance Capital Standard if it failed to recognize the “comparability” of the U.S. insurance industry.

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