American Council of Life Insurers: New Report Details Important Differences Between Insurance and Other Financial Industries

WASHINGTON, Jan. 17 (TNSres) -- The American Council of Life Insurers issued the following news release:

A new report published today details the significant differences between the insurance industry and other financial industries and why these distinctions must be taken into account by policymakers when considering future regulations.

The report by the Global Federation of Insurance Associations (GFIA) entitled "Insurance: A unique sector" explains how the insurance industry is already highly regulated with a stable long-term business model that protects people and businesses from financial hardship. The insurance industry has much less exposure to systemic and liquidity risks compared to banks and other non-banks, the report makes clear.

American Council of Life Insurers President and CEO Susan Neely, who is also President of GFIA, commented: "The insurance industry serves people and global economies by pooling and diversifying risks. It is highly regulated, well-capitalized and has a proven track record of effective risk management. In addition, insurers' investments are typically long-term meaning that they are less exposed to short-term market volatility. This is what makes the insurance industry unique in comparison to other financial industries. As this new report shows, creating unjustified additional regulations that fail to recognize these differences undermines the effectiveness of insurers and their contribution to society."

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The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI's member companies are dedicated to protecting consumers' financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI's 275 member companies represent 93 percent of industry assets in the United States.

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REPORT: https://www.gfiainsurance.org/publications/532/trackdownload/GFIA%20unique%20sector.pdf

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Original text here: https://www.acli.com/posting/nr24-005