The proposed global common framework on insurance supervision (ComFrame) is too prescriptive and will not be accepted in the US, the National Association of Insurance Commissioners (NAIC) says.

It should be redeveloped according to its original intention – a best-practice manual that pulls together the best parts of supervision with issues around insurance core principles – NAIC International Insurance Relations Committee Chairman Thomas Leonardi says.

Instead, policymakers around the world are trying to “reinvent the wheel” when regulators are already collaborating to share information and improve practices.

Mr Leonardi, who is the Connecticut Insurance Commissioner, says insurance in the US is regulated by the states, so ComFrame would have to be accepted by each state commissioner and legislature, then signed off by governors.

“It has to reach a significant amount of approval by a super majority of state legislatures and governors, and the way it is currently structured that just is not going to happen.”

ComFrame has too much of a “checking the box mentality”, is too complicated and should not dictate where insurers allocate capital nor create a new level of regulation, Mr Leonardi says.