Federal and state regulators grapple over insurance supervision

Growing federal powers trouble state commissioners

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Prior to 2010, there wasn’t a single federal agency enshrined in US law with responsibility for the insurance sector. The states administered insurers through their own commissioners, collaborating through the National Association of Insurance Commissioners (NAIC) to develop shared standards and establish best practice.   All this changed following the global financial crisis. The $182 billion (£109 billion) bail-out of AIG brought into sharp relief the potential for insurers