Protecting State Insurance Regulation
Defend the State Insurance Regulatory System
PIA supports a modern, state-based insurance regulatory system and opposes federal laws and regulations that threaten it. As such, PIA supports the repeal of the Federal Insurance Office (FIO).
PIA supports our successful state system of insurance regulation, which has successfully protected consumers and created a competitive and diverse U.S. insurance market that has thrived for over 150 years.
The insurance industry has in place a supervisory system that allows the individual states, rather than a federal bureaucracy, to regulate it, which helps ensure fairness for policyholders and businesses. This system has prevented major financial disasters; in fact, a report issued by the Government Accountability Office (GAO) in June 2013 found the state-based system of insurance regulation helped to mitigate the negative effect the 2008 financial crisis had on the insurance industry.
Repeal the Federal Insurance Office
In 2010, advocates of federal insurance regulation created the FIO as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (commonly referred to as Dodd-Frank). PIA opposed the creation of the FIO from the outset. The very existence of the FIO threatens the primacy of state-based insurance regulation.
Many of FIO’s duties are examples of federal overreach and duplication of entities that already existed in our state-based insurance regulatory system. Additionally, like most federal offices, since its creation, its power has increased. In its decade of existence, the FIO has sought federal regulation of mortgage insurance; inclusion in international supervisory colleges; and uniform national standards for state guaranty associations. In addition, it seeks to administer the National Association of Registered Agents and Brokers (NARAB). Every one of these acts is well outside the FIO’s mandate.
In November 2016, PIA became the first national insurance association to publicly call for the repeal of the FIO. Since then, PIA has been working with members of Congress to develop legislation to repeal it. To that end, we are pleased to support S. 524, the Federal Insurance Office Abolishment Act, sponsored by Senators Ted Cruz (R-TX), Jim Inhofe (R-OK), Cynthia Lummis (R-WY), and Mike Braun (R-IN) and in the House by Reps. Ben Cline (R-VA) and Tom Tiffany (R-WI).
To see the latest blog posts on this issue click here.
For up-to-date information, be sure to visit and follow the PIA Advocacy blog at www.piaadvocacy.com