The Future of Insurance Regulation
Brookings Institution and Georgia State University
About This Event

The Treasury Department’s plan to reform the federal regulatory structure for financial services has focused unusual attention on the insurance sector, which is part of the financial services industry but regulated solely at the state level. Among other things, the Treasury recommended that insurers have the option, like banks, to obtain a federal charter and be regulated solely at the federal level. This would establish a system of dual regulation--at both the federal and state levels--and would make significant changes in the competitive structure of the insurance industry. The impetus for these substantial changes, according to their proponents, comes from changes in the marketplace itself: insurance companies now compete with banks and securities firms across a broad range of activities, and in a world of globalizing financial services, the absence of a national supervisor may impair the competitive position of U.S. companies. Opponents contend that state regulation is better for U.S. consumers and is perfectly sufficient to allow insurers to compete in global markets. This conference will review some of the salient features of the insurance market and insurance regulation today.

This event is cosponsored by the Brookings Institution and Georgia State University, with financial support provided by the Risk Foundation.

Agenda
8:15a.m.
Registration
8:30
Introduction:
Jack Sinnott, Risk Foundation
Robert Klein, Georgia State University
9:00
Panel I: The Framework for Insurance Regulation
Presenters:
Martin Grace, Georgia State University
Hal S. Scott, Harvard University
"Optional Federal Chartering of Insurance: Rationale and Design of a Regulatory Structure"
Robert Detlefsen, National Association of Mutual Insurance Companies
"Potential Consequences of Dual Insurance Chartering"
Discussant:
Robert Inman, University of Pennsylvania
Moderator:
Robert Klein, Georgia State University
10:40
Panel II: Insurance Regulatory Policies
Presenters:
Martin Grace, Georgia State University
Robert Klein, Georgia State University
"Insurance Regulation: The Need for Policy Reform"
Robert E. Litan, Brookings Institution
"The Consumer Benefits of an Optional Federal Charter: The Case of Auto Insurance" (coauthored with Phil O’Connor)
Discussant:
Dennis Carlton, University of Chicago
Moderator:
Peter J. Wallison, AEI
"Convergence in Financial Services Markets: Likely Effects on Insurance Regulation"
12:00p.m.
Luncheon
Special Remarks:
David Nason, U.S. Department of the Treasury
1:30
Panel III: Insurance Regulation, Financial Convergence, and International Trade
Presenters:
Peter J. Wallison, AEI
"Financial Convergence and Insurance Regulation"
John Cooke, International Financial Services London
Harold Skipper, Georgia State University
"An Evaluation of U.S. Insurance Regulation in a Competitive World Insurance Market"
Discussant:
Elizabeth Brown, University of St. Thomas
Moderator:
Robert E. Litan, Brookings Institution
3:00
Panel IV: Perspectives on Insurance Regulation
Presenters:
Andrew Beal, National Association of Insurance Commissioners
Cecelia Kempler, Florida Atlantic University
Terri Vaughan, Drake University
Moderator:
Martin Grace, Georgia State University
4:00
Adjournment
Brookings Institution and Georgia State University
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