American Council of Life Insurers (ACLI) President and CEO Dirk Kempthorne issued the following statement today on the de-designation of the American International Group (AIG) as “systemically important” by the Financial Stability Oversight Council (FSOC):
Washington, D.C. (September 29, 2017) — “We strongly support the Financial Stability Oversight Council’s (FSOC) action today. The designation of life insurance companies has not served FSOC’s intended purpose of safeguarding the nation’s financial system.
“No life insurer should be designated as ‘systemically important’ and FSOC should rescind the designation of the remaining life insurer. Life insurers are sources 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.
“We have consistently recommended to FSOC that instead of designating non-banks such as life insurers as ‘systemically important,’ it could better protect the nation’s economy and American consumers if its efforts focused on assessing macro-prudential risks to U.S. financial stability.”
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 federal, state, 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 more than 95 percent of industry assets and premiums in the United States. Learn more at www.acli.com.