The Captive Insurance Companies Association (CICA) has acknowledged National Association of Insurance Commissioners (NAIC) president Jim Donelon for his refusal to implement the call for a national moratorium on captive insurance transactions made by Benjamin Lawsky, superintendent of financial services for the New York State Department of Financial Services.
In his response to Lawsky’s report, Donelon reminded the financial services superintendent that the NAIC weighs standards before imposing regulations, rather than adopting “a knee-jerk position of issuing a moratorium before the house is on fire”.
Dennis Harwick, CICA president, said: “Having the NAIC remind Lawsky of their (NAIC’s) existing process, while supporting improved transparency, addresses the narrow and unconventional form of reinsurance transaction utilised by banks and life insurance companies referenced in the report without negatively affecting the traditional captive insurance market.”
Harwick also pointed out that CICA was troubled by Lawsky’s comments impugning the regulation of captive insurance companies in states with a long history of credible regulatory oversight.
