Federal Insurance Office & State Regulated Insurance

PIA National has been a thorn in the side of the Federal Insurance Office (FIO) since it was formed during the Obama administration. The PIA has battled the FIO since its inception and, has noted many times, the regulation of insurance belongs to the individual states and the federal government has no authority in insurance matters.

Recently, the FIO has drawn the ire of several Republicans in the U.S. Senate. One of them is Alabama Sen. Katie Britt. As a result, she — and 16 other senators — have introduced the Insurance Data Protection Act.

It is in response to the FIO wanting to collect data from insurance companies via subpoenas to evaluate climate risks and to assess potential disruptions in areas controlled by private insurance. Britt says the Dodd-Frank Wall Street Reform and Consumer Protection Act strictly notes that the FIO is an advisory agency and has no supervisory or regulatory authority over the business of insurance.

PIA National and several other insurance associations support Britt’s bill.

She points out the FIO is overstepping and trying to enforce authority it doesn’t have by “utilizing private insurance data to advance the Biden administration’s leftwing Green New Deal agenda,” Britt said, and noted this bill will put an end to the overstepping once and for all.

“This commonsense legislation would ensure the state-regulated insurance market remains strong, prevent redundant and unnecessary data reporting that would needlessly cost millions of dollars, and protect consumers’ sensitive information,” Britt added.

Britt’s bill has been introduced in the Senate Committee on Banking, Housing and Urban Affairs and one of the co-sponsors is the committee’s ranking member, and former presidential candidate, and former insurance agent, Sen. Tim Scott.

“As a former insurance agent, I know firsthand the importance of our state-based insurance regulation regime that has resulted in highly competitive and fair markets across the country — addressing local issues with local solutions,” Scott said. “That’s why I’ve been alarmed by the FIO’s efforts to overstep its authority and push the Biden administration’s radical climate agenda.”

Other associations supporting the bill are National Association of Mutual Insurance Companies (NAMIC) and the American Property Casualty Insurance Association (APCIA).

Giving the association point of view is NAMIC spokesman, Jimi Grande.

“State regulators have been collecting climate related data for more than a decade and continue to refine those efforts,” Grande said. “FIO piling on at a time of rising costs due to inflation and climate change only adds to the challenge of ensuring insurance affordability and availability for consumers.”

Source link: Insurance Business America — https://bit.ly/3Rw6fNb

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.


PIA WESTERN ALLIANCE VALUES OUR STERLING PARTNERS

More Industry News