“The correct place for the regulation of insurance coverage is on the state stage”
Insurance coverage Information
The Nationwide Affiliation of Skilled Insurance coverage Brokers (PIA) has applauded the reintroduction of a invoice searching for to repeal the Federal Insurance coverage Workplace (FIO) within the Senate.
Sponsored by Senator Ted Cruz, the Federal Insurance coverage Workplace Abolishment Act or S. 1694 goals to safeguard the state insurance coverage regulatory system by repealing the FIO, which was initially shaped below the 2010 Dodd-Frank Wall Road Reform and Shopper Safety Act.
PIA has constantly opposed the institution of the FIO, stating that its duties overlap with different authorities workplaces and state insurance coverage commissioners.
“The correct place for the regulation of insurance coverage is on the state stage, and the state regulation of insurance coverage has served the insurance coverage business and customers properly for over 100 years,” mentioned PIA president Gerald Hemphill.
In 2021, the Biden administration issued an govt order directing the FIO to evaluate local weather dangers confronted by insurance coverage carriers and establish potential protection disruptions in areas liable to local weather change.
Subsequently, the FIO requested zip-code-level information from state insurance coverage departments relating to property insurance coverage protection, liabilities, and losses. The workplace additionally introduced its intention to conduct a climate-related monetary threat information name via the Treasury, increasing its involvement into areas resembling flood insurance coverage.
“In November 2016, PIA grew to become the primary nationwide insurance coverage affiliation to publicly name for the repeal of the FIO, and it stays a high precedence,” Hemphill mentioned additional. “The Federal Insurance coverage Workplace Abolishment Act would shield our sturdy state regulatory construction by absolutely repealing the FIO.”
The reintroduction of the invoice intently follows PIA’s 2023 Advocacy Day, throughout which PIA members from throughout the nation urged their elected representatives to help the abolishment of the FIO.
Final month, an an identical invoice was launched within the Home by Consultant Ben Cline.
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