Run Time: 11:43
July 25, 2005 in News
WSSLC Interview with Ernst Csiszar
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Of all of the issues on Csiszar's plate, TRIA is of primary importance because of the short timeframe for renewing (with potential modifications). However, other issues are equally important: asbestos, the SMART Act, issues that have come out of the Spitzer investigation, contingent commissions and Sarbanes-Oaxley, to name a few. Other topics are better served on a state-by-state basis. Here is a brief summary of Csiszar:
TRIA: What is preferable to the current TRIA is a private-public partnership. Difficulty lies in where the lines of responsibility are drawn. Csiszar has been working with the House and Senate to refashion TRIA. The modeling outcomes of a terrorist attack are enormous, and Csiszar says they can't be handled by private interests alone.
The burdensome regulatory condition squashes market solutions. Government shouldn't be involved in pricing and solvency. The role of government should be for things like TRIA.
The SMART Act is a set of regulations that attempts to bring uniformity to states. Foremost on Csiszar's mind are choice, transparency, fair claims payment and insolvency. The SMART Act does not add federal bureaucracy, but simplifies the system.
Spitzer: if there was bid-rigging, then the criminal system should work its course, but contingent commissions are not as egregious as some may say. However, contingent commissions could create potential for conflict of interest. It's a matter of disclosure.
