Federal Insurance Office Backs off Data Collection Stance — PIA National Approves

PIA National has been at odds with the Federal Insurance Office (FIO) since it was established in 2010 under the Wall Street reforming, Dodd-Frank Act. The association believes it is a federal overreach and has constantly reminded members of Congress, and the FIO, that insurance is regulated by the states and not by the federal government.

The latest tussle between insurers and insurance associations like the PIA is when the FIO announced it would be collecting data on climate-related risks directly from P&C insurers.

Needless to say, that decision went over like a lead balloon.

Insurers and insurance associations like the PIA, the American Property Casualty Insurance Association (APCIA) and the National Association of Mutual Insurance Companies (NAMIC), and others immediately fought the FIO decision.

Legislation was introduced in Congress to reign in the FIO in September of last year. PIA National supports the Insurance Data Protection Act, a bill that makes clear just how much power the FIO has to collect data and subpoena insurers.

The sum total of power? It’s zero.

The FIO has now backed off and says has reached an agreement to collect the data it needs from the National Association of Insurance Commissioners (NAIC).

Jimi Grande is NAMIC’s senior vice president of federal and political affairs. He thinks the FIO and NAIC decision is a good one.

“State regulators have examined the critical impact of climate change on insurance markets and consumers for over a decade and continue to do so,” Grande said. “Agreements between the states and FIO will help ensure that state regulators, who best understand what is needed, collect climate-related data. It will also insulate their effort from federal intrusion on state-based insurance regulation.

Source link: Insurance Journal — https://bit.ly/3TyRSsv

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


More Industry News