Connecticut Senate Bill SB00023

Connecticut 2015 Regular Session

• Introduced: 1/7/15
• Refer: 1/7/15
• Refer: 2/26/15
• Report Pass: 3/10/15
• Refer: 3/20/15
• Report Pass: 3/26/15
• Engrossed: 5/28/15
• Report Pass: 5/29/15

Caption

An Act Concerning Group-wide Supervision For Internationally Active Insurance Groups.

Impact

The enactment of SB00023 is expected to enhance the regulatory landscape of the insurance industry within the state. It allows the state to exert supervisory authority over large, complex insurance groups that may pose significant risks to policyholders and the financial system. By creating a specific supervisory framework, the bill aims to protect consumers while fostering a stable insurance market. It positions Connecticut to be more competitive in attracting and retaining insurers that operate globally, as they will have clearer regulatory expectations.

Summary

SB00023, titled 'An Act Concerning Group-wide Supervision for Internationally Active Insurance Groups,' was introduced to establish a regulatory framework that enables better oversight of multinational insurance holding companies. The bill aims to designate a group-wide supervisor, often the state commissioner, for insurance groups deemed 'internationally active.' This is particularly significant for entities that do business in multiple countries and have substantial operations within Connecticut. The bill outlines the criteria for identifying internationally active insurance groups and the authority of the commissioner in overseeing these entities.

Sentiment

General sentiment surrounding SB00023 has been largely positive among lawmakers and industry stakeholders who view it as a proactive measure for consumer protection and financial stability. Proponents argue that the enhanced supervision is necessary to manage the risks posed by large insurance entities that operate across jurisdictions. Conversely, some concerns have been raised about the potential for overreach by state regulators and the administrative burdens that compliance may impose on insurers. Overall, discussions have highlighted a balance between ensuring rigorous oversight and maintaining a supportive business environment.

Contention

Notable points of contention within the discussions surrounding SB00023 include concerns about the implications of increased regulatory powers. Some critics fear that imposing stringent supervisory standards could limit the flexibility of insurance groups, especially smaller firms trying to compete with larger entities. Others emphasized the importance of collaboration among various regulatory agencies to ensure that the supervision is effective without being excessively burdensome. Ultimately, the dialogue reflects the ongoing tension between regulatory oversight and the need for a favorable climate for business operations.