ACLI President and CEO Dirk Kempthorne issued the following statement today in connection with the House Financial Services Committee hearing titled, “A Legislative Proposal to Create Hope and Opportunity for Investors, Consumers, and Entrepreneurs”

Washington, D.C. (April 26, 2017) – “The Financial Stability Oversight Council (FSOC) has demonstrated repeatedly that it lacks a fundamental understanding of the life insurance industry. Its authority to designate nonbanks as ‘systemically important’ should be repealed.

“ACLI commends House Financial Services Committee Chairman Jeb Hensarling, (R-TX), for provisions of the Financial CHOICE Act that revoke FSOC’s authority to designate nonbanks as ‘systemically important’ and rescind current nonbank designations. 

“Life insurers are a source of financial stability in the economy. Their long term promises and buy-and-hold investment philosophy provide a shock absorber for the economy in times of stress.

“State regulators have supervised the industry with rigorous oversight.  Unnecessary and redundant federal regulation provides no benefit to consumers. Life insurers pay out $1.7 billion every day to provide their customers with financial protection and retirement security.”

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 member companies operating in the United States and abroad. ACLI advocates in state, federal, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing 94 percent of industry assets, 93 percent of life insurance premiums, and 97 percent of annuity considerations in the United States. Learn more at www.acli.com.