On Aug. 19, it was announced that Walter Bell, Alabama insurance commissioner, would be assuming the position of chairman of Swiss Re America Holding Corp., New York, on Sept. 2. The position will have a large lobbying component.
In response to Bell's move, consumer representatives are expressing outrage over the "revolving door" they say the National Association of Insurance Commissioners is failing to address.
In an interview with National Underwriter, Bell said his last day with the Alabama department was to be on Aug. 31.
Bell's new position is one in which he will provide supervisory governance of business in the Americas for Swiss Re, reporting directly to Swiss Re CEO Jacques Aigrain. He will also oversee and direct regulatory and public affairs for all of Swiss Re's North America businesses, advocating to state and federal legislators and regulators, the company said.
Many of these regulators are former colleagues from the NAIC, of which Bell was president in 2007.
The Code of Alabama 1975 (Section 36-25-13, d) states: No public official or public employee who personally participates in the direct regulation, audit, or investigation of a private business, corporation, partnership, or individual shall within 2 years of his or her departure from such employment solicit or accept employment with such private business, corporation, partnership, or individual.
The Consumer Information Source on the NAIC website states that Swiss Re Life & Health America Inc., the company's life operations in the U.S., is licensed in Alabama as well as 47 other states and the District of Columbia.
Swiss Reinsurance America Corp., the company's property-casualty operation, is also licensed in Alabama as well as 48 other states and the District of Columbia, according to the NAIC website.
When asked about the Alabama statute, Bell said he is not being employed by those entities but rather by the holding company. He said he will not be dealing with the Alabama legislature or regulators and will be relocating to New York.
In addition to his tenure as NAIC president, Bell also served on the NAIC's Executive Committee and was chairman of the NAIC International Insurance Relations Committee, as well as a member of several other committees.
While NAIC president, Bell faced the increased possibility that Congress would consider an optional federal charter, a proposal the NAIC opposes.
In a May 25, 2007 press release, Swiss Re expressed support for the introduction of the National Insurance Act of 2007, which it said would "give insurance companies, reinsurers and agents the option of obtaining a federal charter."
On Swiss Re's website, the company states: "A global business must be supported by a strong, centralized regulator. Swiss Re believes that these objectives can best be achieved through an optional federal charter for reinsurers. A move to a more effective and efficient U.S. regulatory system for reinsurers will ultimately make the U.S. a more competitive and more responsive jurisdiction and result in lowering regulatory costs while maintaining, or enhancing, the safety and soundness of the industry."
When asked about a possible disconnect in joining an organization that supports an optional federal charter when he was president of the NAIC, an organization that opposes an OFC, Bell said he will be looking at Swiss Re's position when he assumes his job.
