In a previous post on this blog, we highlighted that in March, Senator Sherrod Brown, Chairman of the Senate Banking Committee wrote to Steven Seitz, Director of the Treasury Federal Insurance Office, and Dean Cameron, President of the National Association of Insurance Commissioners (NAIC), expressing his concerns about private equity’s growing role in the insurance industry. See our prior post and Senator Brown’s letter here.
On June 29, 2022, Mr. Jonathan C. Davidson, Assistant Secretary for Legislative Affairs for the Department of the Treasury responded to Senator Brown’s letter. You can see his full response here.
The letter notes that the Federal Insurance Office will be prioritizing four areas going forward:
- Heightening the monitoring of the life insurance sector’s investment strategies.
- Reviewing the current supervisory and capital frameworks to ensure capital adequacy.
- Considering offshore reinsurance implications.
- Evaluating conflicts of interest.
This is a step in the right direction for accountability!