PIA: Proposed Data Call by FIO an Unnecessary Regulatory Overreach

October 20, 2022

WASHINGTON – A proposed data call issued by the Federal Insurance Office (FIO) is an unnecessary regulatory overreach, according to the National Association of Professional Insurance Agents (PIA).

The FIO issued a Notice of Proposed Rulemaking (NPRM) announcing its plan to collect current and historical data from property and casualty insurers to assist FIO in its efforts to assess climate-related risk. The FIO says such data will help it anticipate potential disruptions in insurance coverage resulting from the effects of climate change.

“This data collection proposal is a good example of FIO’s improper and ongoing overreach into the insurance sector, which is why PIA has consistently sought the repeal of the FIO,” said Lauren Pachman, counsel and director of regulatory affairs. “PIA has a long history of supporting the state regulation of insurance and opposing federal oversight.”  The regulation of insurance is vested in the states because they are better positioned to protect consumers than the federal government.

The proposed data call was foreshadowed by FIO’s June 30 email to all 50 state insurance regulators, asking what data they have that would show insurance coverage, liabilities, and losses for each ZIP code in their states over the past five years. 

Throughout its history, the Federal Insurance Office has attempted in various ways to expand its limited congressional mandate. Since 2016, PIA has called on Congress to repeal the FIO to stop its continued usurpation of the state insurance regulatory system. “These encroachments will continue until the FIO is no longer a threat to the state regulation, which can only happen once it is fully repealed or meaningfully reformed,” Pachman said, adding, “Our advocacy was vital to the introduction of repeal bills in both chambers of Congress earlier this year.”

As the FIO embarks on its pursuit of detailed insurer data, PIA will continue to monitor the FIO’s activities and provide comments on its proposed data call.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA’s web address is http://www.pianational.org.