The state-based regulatory system has not kept pace with changes in the insurance marketplace. The regulatory needs of the industry—both domestically and globally—are quite different today than what they were just a few years ago. The emergence of global regulatory issues affecting U.S. insurers poses even greater challenges. The financial crisis and resulting domestic and global regulatory reform measures also underscore the need for change.
Variations in how laws and regulations are interpreted and enforced state by state provide a disservice to both life insurers and their policyholders. Life insurers’ ability to effectively serve the needs of our customers is highly dependent on a uniform regulatory system. ACLI’s current policy position—as developed by our board of directors in 2000—calls for a two track approach to modernizing insurance regulation: one focused on making the state-based system more uniform, and the other focused on the creation of an optional federal charter. This policy position remains unchanged, although a new review of ACLI’s policy position is under way.