WASHINGTON—The Risk & Insurance Management Society Inc. on Tuesday praised the financial services regulatory reform bill approved by the Senate Banking Housing and Urban Affairs Committee.

While the Restoring American Financial Stability Act, which passed the committee Monday on a 13-10 party line vote, focuses mainly on banks and other noninsurance institutions, the measure contains several provisions supported by RIMS. These include creation of an office within the Treasury Department to monitor the insurance industry and coordinate international insurance issues. The measure also would streamline regulation of surplus lines insurance and reinsurance and allow qualified risk managers easier access to the nonadmitted insurance marketplace.

“RIMS believes its passage will usher in not only a more effective insurance market within the United States, but will also further the country’s influence abroad with regard to insurance issues,” Terry Fleming, president of RIMS and director, division of risk management for Montgomery County, in Rockville, Md., said in a Tuesday statement.

In addition to the insurance office and surplus lines provisions, RIMS noted that the measure calls for requiring large financial institutions to establish risk committees to ensure greater consideration of, and control over, the management of risk on an enterprisewide basis.

“RIMS has long been a proponent of such a measure and applauds the committee’s decision to include it,” RIMS said in the statement.” RIMS views the inclusion of the risk committee requirement as recognition of the committees’ value to shareholders and to the greater financial stability of the U.S. economy.”The House approved its version of financial services regulatory reform late last year. The Senate measure now goes to the Senate floor, where it could be amended.

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