(Washington, DC) - U.S. Rep. Gary Ackerman (D-Queens/L.I.), a member of the House Financial Services Subcommittee on Capital Markets, Government Sponsored Enterprises and Insurance, today made the following opening statement during the Subcommittee’s hearing entitled “Examining Proposals to Reform Insurance Regulation.”

“There seems to be general agreement that insurance regulation, which is principally tasked to state governments, is in need of reform. Insurance products have undoubtedly evolved since many state insurance laws were enacted, and insurance regulation, in some cases, needs to catch up with the industry. And, while I understand the burden that comes with having 50 different sets of regulations – some of which are outdated – I am not certain that an optional federal charter is the most responsible solution, either for insurers or consumers.

Accordingly, I'm pleased that the Subcommittee is taking this issue up, and I want to thank the Chairman for his leadership. If the recent troubles in the housing sector have taught us any lesson, its that we probably don't know as much as we think we do about how our markets work, and what the proper regulatory environment should be. In the same way that a diversified portfolio acts as a shield against loss, I wonder if the diversity of regulatory systems among the states might not have a similar effect on the insurance market.

I look forward to hearing from all of our expert witnesses this afternoon, and I am particularly pleased to once again welcome New York State Superintendent of Insurance Eric Dinallo to the witness dais. Mr. Dinallo has proven to be an articulate voice since he was sworn in as Superintendent of Insurance in New York last year, and he is here today representing the National Association of Insurance Commissioners. Welcome, once again, Superintendent Dinallo.

Thank you, Mr. Chairman, for scheduling this hearing, and I yield back the balance of my time.”

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