United States: ACLI Says Life Insurance Activities Pose No Systemic Risk
November 29, 2016 by Cadwalader, Wickersham & Taft LLP
In response to the latest designations of globally systemic important insurers (“G-SIIs”) by the Financial Stability Board (“FSB”), American Council of Life Insurers (“ACLI”) President and CEO Dirk Kempthorne asserted that the “core activities” of the life insurance industry (i.e., providing financial protection and retirement security to customers) do not pose a systemic risk.
On November 21, 2016, the FSB consulted with the International Association of Insurance Supervisors and national authorities. It identified nine insurers as global systemically important financial institutions. In response, Mr. Kempthorne pointed out that the ACLI might support a “strong regulatory system,” but life insurance companies are heavily regulated at state and local levels already.
