New York Insurance Regulation in the Cuomo Years: Crisis Anticipation (Guest View‪)‬

"No amount of talent, expertise or resources can overcome a lack of will. Indeed, the will to regulate is essential to an efficient, effective and competitive marketplace." This quote was part of several of the presentations I made as Superintendent of Insurance for the State of New York under Governor Mario Cuomo from 1983 to 1990. It reflects the willingness to act with vision for the public good. The Cuomo administration was never overwhelmed or unduly influenced by Wall Street's "flavors of the month" despite powerful lobbying efforts that several of our regulatory initiatives had to overcome. Those initiatives included modernizing the law which oversees financial insurance holding companies, capping junk bonds within a life insurers' investment portfolio and a statute to regulate financial guarantors, a measure that compelled the multi-line property casualty insurance companies to exit this problematic line of business in 1989. The effects of the current recession on the insurance sector have, to a great degree, been mitigated by actions taken by the New York State Insurance Department (the "Department") during the Cuomo administration. Beyond demonstrating a will to regulate, we anticipated crises and acted to protect the public. We moved aggressively to modify the regulatory environment, uncovered systemic vulnerabilities and took unpopular actions that impacted companies with AAA or AA ratings. Some of those companies were Wall Street's "flavor of the month."