19 July 2010
Published in: Regulation - supervision
Lloyd’s welcomes Federal Office of Insurance
Lloyd's has welcomed the successful passage of the Dodd-Frank Act through the US Senate. The far-reaching reform of US financial rules includes the creation of a Federal Office of Insurance. It will be the first time there has been a federal office within the US Treasury dealing with insurance.
The US insurance sector is regulated by state bodies and currently has no central body with substantial powers. While regulation will remain at the state level, the Federal Office of Insurance will have some authority to enter into an international agreement under limited circumstances and will provide a single point of reference for international discussions.
The lack of a central regulator is seen as a sticking point for the US getting equivalence with the Solvency II regime.
Sean McGovern, Lloyd's director and general counsel, said: "We welcome the passage of the Dodd-Frank Act and look forward to working with the proposed Federal Office of Insurance as it develops its policy on international insurance issues.
"We hope it will play an active role in harmonizing regulatory standards and dealing with the equivalence issues which arise under Solvency II."