Following Tuesday’s unanimous vote by insurance regulators to withdraw their original proposal intended to transfer the complete internal control framework of Sarbanes-Oxley to state insurance regulation, the National Association of Mutual Insurance Companies (NAMIC) said that it will continue to oppose an industry alternative that would apply public company shareholder protections to non-public companies.
“The partial SOX content that regulators continue to consider isn’t needed for an industry that is already highly regulated with respect to solvency,” said Neil Alldredge, NAMIC’s senior director of state advocacy. He said questions of cost and applicability would become more critical to principal regulators as the alternative works its way through the NAIC process.
Alldredge said two fundamental questions still remain: 1) Why should shareholder-based protections apply to companies which do not have shareholders? 2) Can regulators justify the cost of this new proposal?
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