Chuck Chamness, President and CEO of the National Association of Mutual Insurance Companies (NAMIC), says the industry can take a victory lap after renewal of the Terrorism and Risk Insurance Act (TRIA) for seven years.

Social Inflation and “nuclear verdicts” are on everyone’s mind now, according to Mr. Chamness, and NAMIC is studying the causes and potential solutions to judgments by juries that are outside the norms.

Extreme weather remains a concern among insurers, which is why the industry is supporting efforts to help policyholders prepare and mitigate potential losses from floods, hurricanes and fire events. Mr. Chamness says the DRI, or Disaster Recovery Institute International, and a prefunded mitigation fund guided by FEMA (Federal Emergency Management Administration) will help municipalities prepare for the next disaster.

NAMIC has also been involved in efforts to guide the International Association of Insurance Supervisors (IAIS) as they work on harmonized Insurance Capital Standards following the Financial Crisis. Initially, the IAIS was focused on developing a standard based on regulatory structures in the European Union (EU) called Solvency II. It did not accommodate the US, State-based regulatory system. A team of policymakers nicknamed “Team USA” including the US Treasury, Federal Reserve and the NAIC (National Association of Insurance Commissioners), are working to stem the tide against a global regulatory standard incompatible with the US insurance market.

Post-Financial Crisis, Mutual insurers are well positioned to address the wants and needs of the next generation of consumers, and professionals coming into the workforce, who tend to have an “anti-corporate/anti Wall Street” attitude toward stock companies. Mutual companies are more “Main Street, aligned with the interests of their Members and policyholders. They have a great value proposition for the future.

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