California officials predict that Standard & Poor’s (S&P) recent downgrade on the credit rating of U.S. government securities will not affect life insurers’ dealings with their consumers in the state.

The National Association of Insurance Commissioners (NAIC) and Standard & Poor’s seem to have differing views on insurers’ risk since the U.S. government debt downgrade last week.

Standard & Poor’s Ratings Services lowered to “AA+” from “AAA” its long-term counterparty credit and financial strength ratings on the member companies of five U.S. insurance groups, following its lowering of the U.S.’s credit rating last week.

Insurers’ investments should not be affected by the decision of Standard & Poor’s Ratings Service to lower the U.S. government’s credit rating, according to state insurance commissioners.

A national association of insurance companies is throwing its “strong support” behind a bill before Congress that would raise the debt ceiling.

A possible U.S. government default on its debts, if the federal debt ceiling is not increased, will not “in the near term” hurt the property-casualty insurance sector, according to a financial analysis firm.