Insurance coalition requests federal intervention

A coalition of over 100 insurers, financial institutions, agent groups and trade associations have called on the Senate Banking Committee in support of an optional federal charter for insurers. The coalition recently requested a federal regulator oversee the industry because they report that the current state system is nothing more than a burden to insurers in both national and global markets.
In a letter to the Senate, the group consisting of names such as American International Group (AIG), Allstate Corp. (ALL) and Hartford Financial (HIG) the coalition requested Senate allow a federal regulator to sit with state insurance departments so that insurers could choose of their own accord, which system should control governance.
More than 140 signatures accompanied the letters statement: “Establishing an optional federal charter would not supplant state regulation; it would simply provide an alternative to it. The burden of having to comply with rules from 56 separate insurance regulators is too inefficient for companies, agents and consumers to manage, especially for those whose interests are national in scope.”