Gov. Racicot’s statement follows:
"The recent turmoil in financial markets has, in a dramatic way, called attention to the stability and strength of America’s interconnected financial institutions, including the role non-bank financial institutions and insurance play in today’s global financial markets. Treasury’s blueprint accurately relies upon consumer protection, the growth and stability of the broader economy, financial solvency, and global competitiveness as the reasons for creating an integrated and comprehensive financial sector regulation at the federal level.
"The inclusion of an "Optional Federal Charter" for insurance, as outlined in the Treasury blueprint, is a major milestone in that it recognizes the important role that the insurance industry now plays in this new financial world of integrated and interconnected markets.
"Providing insurers with the option of a single regulator for insurance will benefit consumers and will be more efficient, effective and rational given the "increasing tension" a state-based regulatory system creates.
"The blueprint provides a holistic and comprehensive framework that would ensure every type of insurance company the ability to do business under a modern regulatory regime, with the most advanced solvency and risk management tools available, ultimately delivering the highest-level of safety, soundness, and consumer protections.
"A newly established Office of National Insurance ("ONI") within Treasury would foster the industry’s ability to ensure that all insurance products, whether financial, life or commercial or personal lines, would protect our economy as a whole.
"Further, empowering the Treasury will allow for the creation of a modern, principles-based insurance regime that will make U.S. insurers more competitive world-wide.
"We appreciate the time and thought that went into the blueprint and look forward to the robust and comprehensive debate soon to take place. AIA and its member companies recognize that implementation of Treasury’s blueprint is only possible with Congressional action and we look forward to working with Congress as the process moves forward."