UNITED STATES DEPARTMENT OF THE TREASURY
FEDERAL ADVISORY COMMITTEE ON INSURANCE
SUMMARY OF PUBLIC MEETING

August 6, 2015

The Federal Advisory Committee on Insurance was convened at 1:00 P.M. on August 6, 2015, in
the Cash Room at the U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW,
Washington, D.C., with Danie! Glaser, Chair, presiding.

In accordance with the provision of the Federal Advisory Committee Act, the meeting was open
to the public.

Committee Members Present:

DANIEL GLASER, President and Chief Executive Officer, Marsh & McLennan
Companies, Inc., Chair

DAVID (BIRNY) BIRNBAUM, Executive Director, Center for Economic Justice

ELIZABETH BROWN, Professor, Georgia State University

BRENDA CUDE, Professor, University of Georgia

JACQUELINE CUNNINGHAM, Commissioner, Virginia Bureau of Insurance

LORETTA FULLER, Chief Executive Officer and Chief Financial Officer, Insurance
Solutions Associates

DAVID HERZOG, Executive Vice President and Chief Financial Officer, American
International Group, Inc.

GEORGE KEISER, Representative, North Dakota House of Representatives

JAMES KELLEHER, Executive Vice President and Chief Legal Officer, Liberty Mutual
Insurance

THEODORE MATHAS, Chairman, President, and Chief Executive Officer, New York Life
Insurance Company (represented by proxy Joel Steinberg)

SEAN MCGOVERN, Chief Risk Officer & General Counsel, Lloyd’s of London

JULIE MCPEAK, Commissioner, Tennessee Department of Commerce and Insurance

THEODORE NICKEL, Commissioner, Wisconsin Office of the Commissioner of
Tnsurance

Also Present:

MICHAEL MCRAITH, Director, Federal Insurance Office, U.S. Department of the Treasury

BRETT HEWITT, Designated Federal Officer, Federal Insurance Office, U.S. Department
of the Treasury

A. TOM FINNELL, Deputy Director, Regulatory Policy, Federal Insurance Office, U.S.
Department of the Treasury

ROBERT KERZNER, President and Chief Executive Officer, LIMRA

RICHARD VICTOR, President and Chief Executive Officer, Workers’ Compensation Research
Institute


Introduction and New Business

Director McRaith welcomed the members of the Federal Advisory Committee on Insurance
(FACI) and convened the meeting.

Update from the Affordability and Accessibility Subcommittee

Chairman Glaser then introduced Birny Birnbaum, Chair of the Affordability and Accessibility
Subcommittee. Mr. Birnbaum provided a summary of a Subcommittee call which discussed the
first of two parts of a report by the National Academy of Sciences on the affordability of national
flood insurance premiums as well as recent activity related to price optimization and big data and
insurance, Chairman Glaser, Director McRaith, Mr. Birnbaum, Representative Keiser, Mr.
Kelleher, Commissioner McPeak, and Commissioner Nickel asked questions of Mr. Birnbaum.

Update from the Domestic Prudential Issues Subcommittee

Chairman Glaser then introduced Joel Steinberg, who served as a proxy for Ted Mathas. Mr.
Steinberg provided a preview of an upcoming Subcommittee call regarding retirement security.

Developments in Workers’ Compensation Insurance

Chairman Glaser then introduced the topic of workers’ compensation. Dr. Richard Victor,
President and CEO of the Workers’ Compensation Research Institute, presented on recent trends
in the workers’ compensation market, as well as the effects of recent reform efforts in certain
states. Members then asked questions of Dr. Victor, with contributions from Director McRaith,
Commissioner Cunningham, and Mr. Kelleher.

The Committee then recessed for a short break.
Retirement Security

Following a fifteen minute break, Chairman Glaser introduced a discussion on retirement
secutity. Bob Kerzner, President and CEO of LIMRA, presented and led a discussion on recent
work done by LIMRA and developments in the retirement security market. Members asked
questions of Mr. Kerzner and engaged in discussion about retirement security, with contributions
from Director McRaith, Representative Keiser, Mr. Birnbaum, Professor Cude, and Mr.
Steinberg.

FIO’s Proposed Definition of Affordability of Personal Auto Insurance

Director McRaith then provided an update on the work of the Federal Insurance Office regarding
monitoring affordability of personal auto insurance for underserved communities.
Commissioner Nickel, Professor Cude, Mr. Kelleher, Ms. Fuller, and Representative Keiser all
contributed to a discussion.


International Association of Insurance Supervisors

Chairman Glaser introduced Tom Finnell, Deputy Director of Regulatory Policy in the Federal
Insurance Office, to present on the recently released International Association of Insurance
Supervisors (IAIS) consultation document regarding higher loss absorbency capacity for global
systemically important insures. Following Mr. Finnell’s presentation, Director McRaith
provided additional updates on ongoing activities at the IAIS. Further contributions were made
by Commissioner McPeak, Mr. Kelleher, and Mr. McGovern.

Certification of Minutes

Prior to the Committee adjourning, Chairman Glaser raised the one item of new business,
certifying the minutes from the May 7, 2015 FACI meeting. The minutes were then certified.

Director McRaith thanked several former FACI members and those who assist in organizing the
FACI meetings.

At 3:58 P.M., Chairman Glaser concluded the meeting.

I hereby certify these minutes of the August 6, 2015 Federal Advisory Committee on Insurance
public meeting are true and correct to the best of my knowledge.

ele

Daniel S. Glaser, FACI Chair