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NFI Scholar Among Four Graduating Seniors Recognized with Rankin Award from Scott College of Business

April 15, 2014

William LehmanIndiana State University has honored four students with the Rankin Memorial Distinguished Senior Awards in recognition of their contributions to the betterment of the university. One of those was William Lehman who is graduating with a bachelor's degree in insurance and risk management and sales negotiations.

Named for Alan C. Rankin, the university's seventh president who served from 1965-1975, the awards recognize outstanding seniors who have demonstrated dedicated membership and leadership ability in campus organizations and in the community. Recipients must also have a cumulative grade-point average of at least 3.25 on a 4.0 scale.

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Insurance Regulation: A New NFI Policy Brief

April 2, 2014

Edward J. KaneA new Policy Brief, 2014-PB-03, "Insurance Contracts and Derivatives that Substitute for them: How and Where Should Their Systemic and and Nonperformance Risks be Regulated?" by Networks Financial Institute Senior Fellow, Edward J. Kane is now available from our Policy Briefs page.

The paper explores state and federal regulation and the need to integrate federal regulation of swap-based substitutes for traditional insurance and reinsurance contracts into the state-based system.

All of NFI's publications are accessible from our publications pages.




Mutual Funds: A New Working Paper

April 1, 2014

M. Kabir HassanA new Working Paper, 2014-WP-01, "Partial Adjustment Toward Equilibrium Mutual Fund Allocations: Evidence from U.S.-based Equity Mutual Funds" by Networks Financial Institute Fellow, M. Kabir Hassan and Ph.D. student, William J. Hippler III, is now available from our Working Papers page.

The paper explores the management of mutual funds, especially tradeoff between the benefits of quick portfolio adjustment, the associated costs of adjustment and the speed at which such adjustments are made.

All of our publications are accessible from our publications pages.




Coming to the Best Conclusions Through Deliberate Decision-Making

March 27, 2014

Two decision-making processes - intuitive and analytical - were demonstrated by William Wilhelm of Indiana State University's Scott College of Business, Wednesday during the college's ninth annual Ethics Conference.

William Wilhelm

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Panel Examines Ethics of Concussions in Contact Athletics

March 26, 2014

It's still OK to encourage youth to get involved in football and other contact sports where concussions occur, a group of panelists participating in a student-led discussion at Indiana State University determined. At the same time, the panelists at the Tuesday evening event concluded it is essential to teach players proper techniques in order to minimize the dangers of concussions.

Panelists Mike Sanford, Indiana State's head football coach; Kendall Walker, an Indiana State linebacker who suffered a severe concussion last season; Chris Barrett, Terre Haute North Vigo High School head football coach and parent of a player; and Dr. Thomas E. Klootwyk, an orthopedic surgeon for the Indianapolis Colts-Methodist Sports Medicine Team.

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PIA Challenges FIO Assertion Insurance be Regulated like Banks

March 26, 2014

Professional Insurance Agents Western Alliance

A recent speech by Federal Insurance Office Director Michael McRaith has drawn criticism from PIA National. Best’s News Service reported on remarks McRaith made to the Networks Financial Institute’s Insurance Public Policy Summit on March 12th. In that speech he said, "We need to get past the notion that the insurance sector in the United States should be treated separately than any other sector because of this historic debate going back to 1904."

PIA Senior Vice President Patrica Borowski took exception to McRaith’s claim. "When Mr. McRaith says the insurance sector should be treated the same as the banking and securities sectors, he is dead wrong, and in conflict with current federal laws, among them the McCarran-Ferguson Act and the Gramm-Leach-Bliley Act (GLBA). The fact that insurance is regulated by our state-based regulatory system is why our sector — and the policyholders it serves — emerged almost completely unscathed from the financial crisis of 2007-2009, in marked contrast to the federally-regulated sectors."

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Ethics Week Continues Today

March 25, 2014

Today (Tuesday) a diverse panel will discuss the level of risk, due to concussions, in contact sports such as football. This event will be community wide bringing in parents, coaches, and football players from around the Wabash Valley. It will be hosted in Dede II and Dede III at 6 p.m. To wrap up Ethics week, the Ethics Conference will take place on Wednesday, March 26. We have gathered fourteen different speakers to discuss controversial topics in today's society. Check-In for the conference will begin at 11 a.m.

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Networks Professional Development Program Today

March 24, 2014

The Networks Professional Development Program is hosting the 9th Annual Ethics Conference. As in years past, Ethics week is packed with scholarly events and highly regarded speakers.

Monday, March 24 is with the Ethics Bowl. Going on its fourth year, this debate tournament allows students to express their opinions on current ethical situations. The event is held in Holmstedt Hall room 102 at 7 p.m.

Tuesday, March 25, a diverse panel will discuss the level of risk, due to concussions, in contact sports such as football. This event will be community wide bringing in parents, coaches, and football players from around the Wabash Valley. It will be hosted in Dede II and Dede III at 6 p.m.

To wrap up Ethics week, the Ethics Conference will take place on Wednesday, March 26. We have gathered fourteen different speakers to discuss controversial topics in today's society. Check-In for the conference will begin at 11 a.m.

<< Read Full Story >>




PIA Challenges FIO Assertion That Insurance Should Be Regulated Like Banks, Securities

March 24, 2014

National Association of Professional Insurance Agents

The National Association of Professional Insurance Agents (PIA) takes issue with an assertion made by Michael McRaith, the director of the Federal Insurance Office (FIO), in a recent speech. In remarks to the Networks Financial Institute’s Insurance Public Policy Summit on March 12, as reported by Best’s News Service, McRaith said this: "We need to get past the notion that the insurance sector in the United States should be treated separately than any other sector because of this historic debate going back to 1904."

"When Mr. McRaith says the insurance sector should be treated the same as the banking and securities sectors, he is dead wrong, and in conflict with current federal laws, among them the McCarran-Ferguson Act and the Gramm-Leach-Bliley Act (GLBA)," said PIA Senior Vice President Patricia A. Borowski. "The fact that insurance is regulated by our state-based regulatory system is why our sector – and the policyholders it serves – emerged almost completely unscathed from the financial crisis of 2007-2009, in marked contrast to the federally-regulated sectors."

<< Read Full Story >>



10th Annual Insurance Public Policy Summit

We have received some very positive reviews of the Insurance Summit and we would like to thank the speakers and everyone that attended.

All of the speakers were very well received and the PowerPoint presentation used by Andrés Portilla, Director of Regulatory Affairs at the Institute of International Finance (IIF) is now available for download. (1.3Mb).

The report written by Networks Financial Institute for the Federal Insurance Office (FIO) (PDF, 10.9Mb, 60 pages) is also available as is the report issued by the FIO itself, "How to Modernize and Improve the System of Insurance Regulation in the United States." (PDF, 3.4Mb, 71 pages).

The FIO's reports and notices page can be found on the U.S. Department of the Treasury web page at http://www.treasury.gov/initiatives/fio/reports-and-notices/Pages/default.aspx

Portilla PPTX
Andrés Portilla's Presentation
(PPTX, 1.3Mb)
FIO Report
FIO Report
(PDF, 3.4Mb, 71 pages)
NFI FIO Report
NFI FIO Report
(PDF, 10.9Mb, 60 pages)

The paper presented by Peter Wallison is also available to download:

"The Authority of the FSOC and the FSB to Designate SIFIs: Implications for the Regulation of Insurers in the United States after the Prudential Decision"

Volume: 2014-PB-02
Author: Peter J. Wallison
Published Date: March 2014

Download (PDF, 449Kb, 16 pages)

Summit Summaries

Our Summit Summary is available to download (PDF, 19 pages, 654Kb) or can be viewed on our Summit Summary pages.

Faegre Baker Daniels have published a summary of the Summit on their web pages:

Industry and Government Leaders Gather for 10th Annual NFI Insurance Public Policy Summit

March 21, 2014

Faegre Baker Daniels: Record Audience Hears Latest on Hill, FIO, and Global Developments

Faegre Baker Daniels and FaegreBD Consulting were pleased to partner again with Networks Financial Institute (NFI) and the Scott College of Business at Indiana State University in presenting the 10th Annual Insurance Public Policy Summit in Washington, D.C., on March 12, 2014. This year's Summit focused on U.S. and international insurance regulation.

<< Read Full Faegre Baker Daniels Summary >>

<< Go to Insurance Summit pages >>




Whalen Paper Among Top Downloads

March 18, 2014

R. Christopher WhalenA Policy Brief written by Networks Financial Institute (NFI) Fellow Christopher Whalen, "Dodd-Frank and the Great Debate: Regulation vs. Growth" was recently listed in several Social Science Research Network’s (SSRN) categories as one of the top downloads for recent papers.

Whalen's paper (NFI volume number 2014-PB-01) examines the development of regulation in the US from the 19th century up to the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010, from both a political and economic perspective and is available from our Policy Briefs page.

<< Read Full Story >>




Clarification of Collins Amendment Is Credit Positive for Systemically Important Insurers

March 17, 2014

Fixed Income Analysts Society: Credit Outlook

At a public policy forum last week, the National Association of Insurance Commissioners (NAIC) President-elect and Montana Insurance Commissioner, Monica Lindeen, said that the organization aims to limit or wind down the risky activities of firms that are systemically important, which would also benefit their risk profiles.

Designation as a non-bank SIFI will place insurers under the jurisdiction of the Federal Reserve System, which will provide regulatory oversight beyond the current state insurance regulatory framework for insurers. Non-bank SIFIs will be subject to additional scrutiny and requirements related to solvency, capital adequacy and liquidity. They will need to pass rigorous stress-testing, which would likely require that they maintain more conservative financial management, thereby limiting their ability to assume outsize risks. Additionally, if being a non-bank SIFI provides access to the Fed window for liquidity, these issuers could benefit from funds for unanticipated needs in a severe stress scenario

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Chairman Neugebauer Describes Options for TRIA

March 14, 2014

Bank-Insurance Connection

Rep. Randy Neugebauer (R-TX), Chairman of the House Financial Services Committee's subcommittee on housing and insurance outlined his options for TRIA while speaking at Indiana State University's 10th annual Network Financial Institute insurance public policy summit in Washington.

<< Read Full Story >>




Boehner Lists TRIA Extension as Key House Priority in Coming Months; Universities Weigh in on Terrorism Insurance Debate

March 14, 2014

The Real Estate Roundtable

In a sign of ongoing challenges, House Financial Services Housing and Insurance Subcommittee Chairman Randy Neugebauer (R-TX) on Wednesday outlined a range of TRIA policy options including:

Neugebauer made his remarks at the Indiana State University’s 10th annual Network Financial Institute insurance public policy summit in Washington. American Bankers Association.

<< Read Full Story >>




Feds Will Play a Role in U.S. Insurance Regulation, FIO’s McRaith Says

March 13, 2014

Carrier Management

While Treasury’s Federal Insurance Office is promoting a hybrid landscape of state and federal insurance regulation, discussion in insurance regulatory circles still centers on preemption of state regulation—the need, fear or avoidance of it.

FIO Director Michael McRaith, in one of his first public appearances since FIO released the modernization report in December, said that no one debates that the absence of uniformity in the states creates inefficiencies and burdens for stakeholders like consumers and insurance companies. He said that he envisions building upon the hybrid model and calibrating the state and federal roles.

The states are the primary regulators of insurance, but the federal government is equipped to play a part as well—and will, according to McRaith’s remarks at the Networks Financial Institute’s (NFI) 10th anniversary Insurance Public Policy Summit at Indiana State University in Washington on Mar.12.

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NAIC Leader Looks to "Wind Down" SIFI Designees' Actions

March 12, 2014

SNL Financial

Insurance company activities representing a true systemic economic risk should be wound down, NAIC President-elect and Montana State Auditor Monica Lindeen said at a public policy forum in Washington, D.C., on March 12.

The bar to designating an insurance company as a nonbank systemically important financial institution should be high, with evaluations based on highly leveraged, thinly capitalized or unregulated activities, Monica Lindeen said at the 10th Annual Networks Financial Institute Insurance Public Policy Summit. NAIC members are uneasy at the prospect of national and international systemic risk designations creating two tiers of companies: those labeled as SIFIs and those not, she said. "Our goal is to wind down the activities of firms that are indeed systemic," Lindeen said.

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House, Senate members offer options on extending terrorism backstop

March 12, 2014

Business Insurance

There are three options to deal with the federal government's terrorism insurance backstop program, a key member of Congress said Wednesday. The program could be allowed to expire on Dec. 31, as it is slated to do, said U.S. Rep. Randy Neugebauer, R-Texas and chairman of the House Financial Services Committee's subcommittee on housing and insurance.

The program also could be extended, Rep. Neugebauer told attendees Wednesday at Indiana State University's 10th annual Network Financial Institute insurance public policy summit in Washington. The third option is if there is support to continue the backstop, "how can we move the ball forward to phasing out" the program while giving the insurance industry time to prepare business models to deal with the terrorism risk, he said.

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Build on hybrid system of insurance regulation: FIO Director McRaith

March 12, 2014

Business Insurance

The Federal Insurance Office's report on insurance regulatory modernization is meant to address "the world as it is," FIO Director Michael McRaith said Wednesday. Mr. McRaith said in preparing the report, which was issued in December, the drafters determined that the United States should build on the current hybrid system of state and federal insurance regulation.

Speaking Wednesday at Indiana State University's 10th annual Network Financial Institute insurance public policy summit, Mr. McRaith said even backers of state insurance regulation support the idea of some federal role in the issue.

<< Read Full Story >>




FIO Modernization Report Recommendations: Signs Point to "Maybe"

March 11, 2014

Wolters Kluwer Financial Services: Compliance Corner

When Federal Insurance Office (FIO) Director Michael McRaith delivers the keynote at the Insurance Public Policy Summit in Washington this week, the report the Office issued this past December, How to Modernize and Improve the System of Insurance Regulation in the United States, will take center stage.

The long awaited … and delayed … report has been the subject of quite a bit of controversy in the weeks since its arrival, not surprising given the longstanding concerns on both sides over the role of the federal government in regulation of an industry that has traditionally been left almost entirely to the states. Perhaps too, the entry into the health insurance arena of various federal entities involved with health care reform has exacerbated tensions over the prospect of federal intervention in other major lines of business, i.e., property, casualty, life and annuities, reinsurance.

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Junior class adds new elements to Indiana State Ethics Conference

March 7, 2014

Rebranded and renamed, the 9th Annual Ethics Conference at Indiana State University is set for March 26. The conference, which is themed "The Ripple Effect," will feature three keynote speakers, beginning at 11:45 a.m., March 26, with Mark Sifferlen, first vice president of ethics and compliance at Cummins Inc. Sifferlen also serves as the corporate secretary, looking at corporate governance and compliance with the Securities and Exchange Commission and the New York Stock Exchange.

<< Read Full Story >>




Career Opportunity Fair Don't forget the Career Opportunity Fair on February 26 at 10am - 2pm in the Hulman Center.

The following events will help you prepare, and there are more tips on the Career Center pages.

10th Annual Insurance Public Policy Summit

Federal insurance director to keynote 2014 Insurance Public Policy Summit

February 24, 2014

"The NFI summit has earned a reputation as one of the most engaging and provocative annual events for the financial services industry and this year's program may produce the most vigorous discussion yet," said Brien Smith, dean of Indiana State University's Scott College of Business and interim director of NFI.

<< Read Full Story >>      << Go to Insurance Summit pages >>




Christopher Whalen: New Policy Brief

February 24, 2014

A new Policy Brief, 2014-PB-01, "Dodd-Frank and the Great Debate: Regulation vs. Growth" by financial analyst, investment banker, author and NFI Fellow, Christopher Whalen, is now available from our Policy Briefs page.

The paper explores the swing of public policy from periods of strict regulation to eras of greater permissiveness has enormous implications for economic growth. This paper examines the development of regulation in the US from the 19th century up to the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010, from both a political and economic perspective.

All of our publications are accessible from our publications pages.




Speakers for the 10th Annual Insurance Public Policy Summit

February 24, 2014

We are pleased to announce that Michael T. McRaith, Director of the Federal Insurance Office (FIO), Senator Heidi Heitkamp (D-ND), of the Senate Banking Committee and and Senate Committee on Small Business and Entrepreneurship and Congressman Randy Neugebauer (R-TX), Chairman of the House Financial Services Subcommittee on Housing and Insurance will be speaking at this years' Summit.

Other confirmed speakers include:

Monica J. Lindeen, President-Elect of the National Association of Insurance Commissioners (NAIC) and Commissioner of Securities and Insurance, Montana State Auditor.

Peter G. Gallanis, President of the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA).

Martin F. Grace, James S. Kemper Professor of Risk Management and Associate Director and Research Associate at the Center for Risk Management and Insurance Research at Georgia State University. Networks Financial Institute Senior Fellow.

Kevin Nixon, Managing Director of Regulatory Affairs at the Institute of International Finance (IIF).

Tim Pawlenty, Chief Executive Officer of the Financial Services Roundtable.

Leigh Ann Pusey, President and CEO of the American Insurance Association (AIA).

Peter J. Wallison, Co-Director of American Enterprise Institute's (AEI) program on Financial Policy Studies.

Michael T. McRaith

Michael T. McRaith
Senator Heidi Heitkamp

Senator Heidi Heitkamp
Congressman Randy Neugebauer

Congressman Randy Neugebauer
Monica J. Lindeen

Monica J. Lindeen
Peter G. Gallanis

Peter G. Gallanis
Martin F. Grace

Martin F. Grace
Kevin Nixon

Kevin Nixon
Tim Pawlenty

Tim Pawlenty
Leigh Ann Pusey

Leigh Ann Pusey
Peter J. Wallison

Peter J. Wallison

Biographies of these speakers can be found on our Summit pages.




Understanding the Phases of Personal Finance

February 24, 2014

IndyStar

Many economists will make announcements that "this time is different" when trying to explain why markets or economies begin to divert from their historical averages. They try to explain why home values can appreciate indefinitely (think housing crash of 2006-07) or why technology companies don't have to be profitable (think techwreck, 2000.) This particular writing has nothing to do with the economic times or market conditions. Rather, it is all about you and where you are financially.

Third and fourth grade students at Mill Creek East Elementary participated in an interactive program Wednesday to teach them personal finance. The Kids Count on the Money Bus is a mobile classroom to teach financial literacy by the Networks Financial Institute at Indiana State University.

<< Read Full Story >>



Sycamores Career Link Don't forget the Career Center Professional Clothing Giveaway on February 18 at 4pm - 6pm in Dede I, HMSU.

The giveaway is for students in need of professional clothes for interviews who don't have access to them currently. It is also a chance to ask us if an outfit or item is appropriate to wear to an interview or on the job! See more on the Career Center pages.


Networks Financial Institute helped shape Federal Insurance Office report

February 13, 2014

Networks' FIO ReportIndiana State University's Networks Financial Institute (NFI) provided significant input into the Federal Insurance Office's recently released report on modernizing and improving insurance regulation.

For more than a decade, NFI - an outreach of Indiana State's Scott College of Business - has been working to answer challenges surrounding the financial services industry. A 2011 NFI policy brief provided detailed recommendations for the insurance office's congressionally-mandated report on how to respond to questions posed by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Read Networks' FIO Report

<< Read Full Story >>



10th Annual Insurance Public Policy Summit

 

Washington D.C. - March 12, 2014

Register Now

Add 10AIPPS to your calendar Add this event to your calendar. This is an .ics file download and can be used with most calendar programs including MS Outlook, Apple iCal and Google Calendar.

Confronting New Challenges in U.S.
and International Regulations

Networks Financial Institute, a nationally recognized thought leader in insurance regulatory reform, is uniquely positioned to provide insight and influence insurance public policy. The NFI Insurance Public Policy Summit has earned a reputation as one of the most engaging and provocative annual events for the financial services sector, and 2014 will be no exception.

U.S. financial institutions have been significant players in international markets, but globalization has brought new challenges for U.S. regulators, policymakers and insurers. Congress and the Administration will be stepping up their efforts to examine the current regulatory framework and other modernization/efficiency/competitiveness proposals.

Mark your calendar now to be on hand with key Congressional, government and industry leaders to hear experts present new research on the challenges facing U.S. and international financial markets.

Congressional, Administration and industry leaders along with expert researchers have been invited to present at the Summit.

When:

Wednesday, March 12, 2014

Where:

The Rotunda
Ronald Reagan Building and International Trade Center
1300 Pennsylvania Avenue, NW
Washington, DC 20004

The rotunda is on the 8th floor of the ITC.

All attendees should have a Photo ID (Driver’s License, Passport, etc) to gain entry to the building.

There are several entrances to this building and it is recommended that the one on Pennsylvania Avenue is used.

Directions & Parking:

Please see the Ronald Reagan Building and International Trade Center web site

Information:

More information will be added to the event pages as it becomes available or you can contact:

Ray Thomas
Networks Financial Institute, Indiana State University
812-237-2158
raymond.thomas@indstate.edu

This is a free and widely attended event organized by Networks Financial Institute

Register Now

Networks Financial Institute's 10th Annual Insurance Public Policy Summit is generously supported by

Faegre Baker Daniels