Will insurance industry giants continue to be “too big to fail”?

Insurance Industry Giants - Metlife Building New York

A new memo is currently circulating to propose legislation removing that status from massive insurers. Representative Jeb Hensarling (R-Texas) is circulating a memo to remove insurance industry giants from their “too big to fail” designation. The memo stated that proposed legislation would take that status away from even the biggest insurers in the country. The designation was granted to MetLife, AIG and Prudential immediately following the recent financial crisis. A regulatory consortium, the Financial Stability Oversight Council, deemed the insurance industry giants as “systematically important” to the American economy. That…

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IAIS introduces new methodology to identify insurance companies that are too big to fail

Insurance news

New criteria expected to single out insurance companies on their economic importance The International Association of Insurance Supervisors (IAIS), an organization that represents the world’s insurance regulators, has introduced new criteria for identifying insurance companies that can be considered “too big to fail.” This term became popular during the economic crisis in the U.S., where companies like the American International Group (AIG) were thrust into limelight for the part they played in the disaster. Companies that are considered too big to fail are considered vital to the economic stability of…

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