Modernizing Insurance Regulation

The future of the insurance regulation begins now For those involved with the insurance industry, from investment professionals to policy makers, and regulators to legislators, tremendous change is coming. With insurance premiums constituting an ever-growing portion of annual U.S. GDP and provisions of the Dodd-Frank Act specifically calling for modernization of insurance regulations, the issues at hand are pervasive. In Modernizing Insurance Regulation, these issues are described against a backdrop of the political and industry discussions that surround insurance, regulation, and systemic risk. Experts Viral V. Acharya and Matthew Richardson discuss a variety of issues with top thinkers in the fields of finance, derivatives, credit risk, and banking to bring to light the most germane elements of this ongoing discussion. In Modernizing Insurance Regulation, Acharya and Richardson call on the expertise of all the relevant stakeholders within government, academia, and industry to offer a well-rounded and independent view of insurance regulation and how the evolution of this key industry affects the U.S. economy now and in the future. Provides an overview of the feasibility of maintaining a state-level regulatory structure Offers a view of the issues from top academics, industry leaders, and state regulators Explores the debate surrounding the insurance industry and systemic risk Provides an in-depth look at upcoming changes under the Dodd-Frank Act Modernizing Insurance Regulation provides a look into the crucial changes coming to insurance regulation and an overview of how those changes will affect almost everyone.

The future of the insurance regulation begins nowFor those involved with the insurance industry, from investmentprofessionals to policy makers, and regulators to legislatorstremendous change is coming. With insurance premiums constitutingan ever-growing portion of annual U.S. GDP and provisions of theDodd-Frank Act specifically calling for modernization of insuranceregulations, the issues at hand are pervasive. In ModernizingInsurance Regulation, these issues are described against abackdrop of the political and industry discussions that surroundinsurance, regulation, and systemic risk. Experts Viral V. Acharyaand Matthew Richardson discuss a variety of issues with topthinkers in the fields of finance, derivatives, credit risk, andbanking to bring to light the most germane elements of this ongoingdiscussion.In Modernizing Insurance Regulation, Acharya andRichardson call on the expertise of all the relevant stakeholderswithin government, academia, and industry to offer a well-roundedand independent view of insurance regulation and how the evolutionof this key industry affects the U.S. economy now and in thefuture.* Provides an overview of the feasibility of maintaining astate-level regulatory structure* Offers a view of the issues from top academics, industryleaders, and state regulators* Explores the debate surrounding the insurance industry andsystemic risk* Provides an in-depth look at upcoming changes under theDodd-Frank ActModernizing Insurance Regulation provides a look into thecrucial changes coming to insurance regulation and an overview ofhow those changes will affect almost everyone.

PrefaceAcknowledgmentsChapter 2: Life Insurance's Importance to AmericanFamilies and Industry's Concern about Regulation (DirkKempthorne)Chapter 3: Why Insurance Needs a Federal Regulator Option(Roger W. Ferguson, Jr.)Chapter 4: Observations on Insurance RegulationUniformity, Efficiency, and Financial Stability (Therese M.Vaughan)Chapter 5: Lessons Learned from AIG for ModernizingInsurance Regulation (Eric R. Dinallo)Chapter 6: Assessing the Vulnerability of the U.S. LifeInsurance Industry (Anna Paulson, Thanases Plestis, Richard RosenRobert McMenamin and Zain Mohey-Dean)Appendix 6A: Details on Estimating Asset RiskChapter 7: Systemic Risk and Regulation of the U.S.Insurance Industry (J. David Cummins and Mary A. Weiss)Chapter 8: Designation and Supervision of Insurance SIFIs(Scott E. Harrington and Alan B. Miller)Chapter 9: Is the Insurance Industry Systemically Risky?(Viral V Acharya and Matthew Richardson¯1)Chapter 10: Modernizing the Safety Net for InsuranceCompanies (John H. Biggs)Chapter 11: Policyholder Protection in the Wake of theFinancial Crisis (Peter G. Gallanis)Appendix 11A: The Critical Role of "PromptCorrective Action"Appendix 11B: Table of Relevant Guaranty Association CoverageLevels by StateAs of September 19, 2013 (Subject to Change)Chapter 12: Comparative Regulation of MarketIntermediaries: Insights from the Indian Life Insurance Market(Santosh Anagol (Wharton), Shawn Cole (Harvard Business School)and Shayak Sarkar (Harvard University))About the AuthorsAbout the WebsiteIndex