The financial crisis prompted a fundamental shift in insurance regulation. In an in-depth Q&A with the NOLHGA Journal, a publication from the National Organization of Life & Health Insurance Guaranty Associations, Sara Powell and Scott Kosnoff, partners in Faegre Baker Daniels’ insurance law practice, discussed the new goals and stakeholders informing regulatory policies, impacts on the guaranty system, and the role the two attorneys play in preventing another economic crisis.
Powell explained that insurance regulation was up to the states prior to the financial crisis; the federal government and international parties were less involved. Kosnoff added that this decentralized approach changed after the financial crisis as policymakers focus on financial stability. The new emphasis on financial stability has made the guaranty system a central concern among regulators—a matter that Kosnoff and Powell have discussed with the Federal Reserve Board multiple times.
“We think we have broadened international perspectives on policyholder protection schemes, although we certainly have a ways to go,” Powell said.
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