Senate Committee on Banking, Housing, and City Affairs Chairman Sherrod Brown (D-OH) has forwarded correspondence to 2 entities relating to considerations about personal fairness’s insurance coverage trade position.
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Brown’s letter to Director of the Treasury Federal Insurance coverage Workplace Steven Seitz and Nationwide Affiliation of Insurance coverage Commissioners (NAIC) President Dean Cameron features a requested report back to Congress no later than Might 31, 2022.
“I’m writing to specific my concern that insurance coverage funding merchandise staff rely upon for his or her retirement are being transferred to those dangerous corporations which have a observe document of undermining pension and retirement applications,” Brown wrote. “In FIO’s (Federal Insurance coverage Workplace) most up-to-date report, you identified these preparations have grow to be more and more frequent over the past decade.”
Brown maintains staff who selected to take a position their retirement financial savings in conservative and long-lived insurance coverage companies presently discover themselves paying premiums to riskier companies with much less expertise within the insurance coverage enterprise.
“Whereas funding companies may profit from big income within the quick time period, failure to adequately handle these dangers could in the end value policyholders their retirement incomes,” Brown concluded. “Given the fast progress of insurance coverage and retirement merchandise held and managed by funding companies and the potential affect on staff, I’m requesting that FIO, in session with NAIC, work to gather further information from insurers after which additional research this matter.”