American Council of Life Insurers (ACLI) President and CEO Susan Neely issued the following statement today after the Financial Stability Oversight Council (FSOC) announced its rescission of the designation of Prudential Financial as a “nonbank systemically important financial institution.”
Washington, D.C. (October 17, 2018) — “We strongly support the Financial Stability Oversight Council’s (FSOC) action today. The inappropriate designation of Prudential Financial was the outcome of a flawed process that demonstrated a lack of understanding of the insurance business model and ignored state insurance regulators’ effective oversight of the life insurance industry.
“Life insurers are sources of financial stability in the economy, not systemic risk. Their enduring promises and long-term investment philosophy provide a shock absorber for the economy in times of stress.
“ACLI recommends that FSOC’s efforts moving forward focus on assessing macro-prudential risks to U.S. financial stability and working with primary financial regulators to address them. By reforming its processes and moving away from a designate-first approach, FSOC can have an important role in protecting the nation’s economy and American consumers."
The American Council of Life Insurers (ACLI) advocates on behalf of 290 member companies dedicated to providing products and services that promote consumers’ financial and retirement security. 90 million American families depend on our members for life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, dental and vision and other supplemental benefits. ACLI represents member companies in state, federal and international forums for public policy that supports the industry marketplace and the families that rely on life insurers’ products for peace of mind. ACLI members represent 95 percent of industry assets in the United States.