Metlife sued the Federal Government claiming they are not a financial risk in the event of an economic crisis and do not need to be overseen by Federal Regulators. What is MetLife trying to hide such that they are fighting US regulators? AIG and Prudential were deemed in the same category as MetLife, yet these companies are agreeing to the higher level of scrutiny. Long Term Disability Insurance policy holders of Metlife should welcome the government regulation as it is something that will likely force MetLife to maintain higher reserves.
Higher reserves would mean more protection for MetLife disability insurance policy holders, but it could limit MetLife’s ability to sell more disability policies. Policy holders of MetLife do not need to panic, but the US Government has concerns about the financial stability of Metlife.
To lean more about the recent lawsuit filed by Metlife please read the article published by Fortune.