Geithner names insurance director to head new insurance office

Treasury Secretary Timothy Geithner has named his department's first director of the new Federal Insurance Office (FIO).

Michael McRaith, currently Illinois's insurance director, will be the first person to head the new office, which was created as part of the Dodd-Frank financial reform law.

Geithner announced the pick at Thursday's meeting of the Financial Stability Oversight Council (FSOC), a special panel also created by Dodd-Frank that gathers the heads of all major financial regulators to discuss broad issues affecting the financial sector.

McRaith's appointment comes after Democrats and Republicans in both the House and Senate had called the administration out for its missing insurance experts. Lawmakers warned the president in February that the FSOC was tackling issues that impact the insurance industry without the appropriate experts. 

At the time, the FSOC had just one non-voting insurance expert on the panel. Spots reserved for the FIO director and an independent expert appointed by the president were vacant. The independent expert spot remains open.

In his new position, McRaith will be responsible for monitoring the insurance industry and advise Congress and other federal entities on issues in that sector.

The Property Casualty Insurers Association of America (PCI) praised the selection Thursday.

"We are pleased that the Department of Treasury has listened to the calls from the insurance sector and congressional leaders from both sides of the aisle to fill this critically important position," said PCI's David Sampson, president and chief executive officer. "Director McRaith brings extensive experience in the insurance sector and a deep understanding of the state insurance regulatory system.”