Statement on the AIA Draft Optional Federal Charter Bill（Sep. 20, 2001）
In response to calls from both within and beyond the U.S. market for reform to the state-by-state regulatory system, the National Association of Insurance Commissioners (NAIC) is undertaking measures to unify regulations among the states. If, in addition to the NAIC's unification efforts, an optional federal charter program of the sort proposed by the AIA is introduced, we believe it will be possible to solve the problems presented by inconsistent state regulation. This will lead to the further development of the insurance market in the United States, by encouraging the entry by new participants and by promoting the efficiency of the insurance business overall.
The Japanese non-life insurance industry has called for regulatory uniformity among the different states on as many occasions as possible, including the recent Japan - U.S. Insurance Talks and the negotiations on the WTO Financial Services Agreement as part of the General Agreement on Trade in Services. We applaud the current initiatives to seek the introduction of a federal regulatory structure into the U.S. insurance industry, and we sincerely hope that an in-depth discussion on this issue will take place among the concerned parties, including the private sector, to realize truly effective federal regulation. As the trade association representing non-life insurers operating in Japan, it is to us especially encouraging that the AIA, noted in the world as the leading trade association representing property & casualty insurers in the United States, is one of the advocates initiating this move, along with other organizations representing different parties in the industry, such as the American Council of Life Insurers (ACLI) and the American Bankers Insurance Association (ABIA). While we will continue to follow the debate on the Federal charter bill, we will maintain our support for this important initiative.