Fed promises not to over-regulate insurance industry

International capital standards will not be unilaterally imposed on domestic US insurers. That was the message from the Fed to the Senate Banking Committee at a meeting Tuesday. However many large insurers operate across international borders and may therefore face tougher regulations across jurisdictions. Michael McRaith, director of the Federal Insurance Office said that US insurers are expecting around 40 per cent of their revenue to be from international markets. Past president of the National Association of Insurance Commissioners Kevin McCarty highlighted that its duty is to the US insurance industry and said that the association would not implement international standards that are not congruent with putting policyholders first.