The much talked about shadow insurance inquiry in NYC was a hot topic at this years VCIA press meeting.
David Provost of the Vermont Department of Financial Regulation, Daniel Towle of the state’s Agency of Commerce and Community Development and Richard Smith of the VCIA commented on Benjamin Lawsky’s call for a national moratorium on captive insurance transactions from the National Association of Insurance Commissioners (NAIC).
The New York State Department of Financial Services’s superintendent issued a report in June blasting New York-based insurers for hiding at least $48 billion of ‘shadow insurance’ transactions in captive and reinsurance entities.
Provost said that “the entire NAIC was perturbed at Lawsky’s report and comments”, partly because it is the association’s job to look at the issues that the financial services superintendent examined in his report.
Smith added: “[Shadow insurance is] a political ball he wants to bat around. [Lawsky’s comments were] irresponsible—that’s why it’s maddening.”
