“The proper place for insurance regulation is at the state level”
By Mika Pangilinan
The National Association of Professional Insurance Agents (PIA) applauded the Senate’s return of the bill seeking to repeal the Federal Insurance Office (FIO).
Sponsored by Senator Ted Cruz, the Federal Insurance Office Abolishment Act or S. 1694 aims to protect the state’s insurance regulatory system by repealing the FIO, which was originally formed under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
The PIA has always opposed the establishment of the FIO, stating that its duties overlap with other government offices and state insurance commissioners.
“The proper place for insurance regulation is at the state level, and state regulation of insurance has served the insurance industry and consumers well for over a hundred years,” said PIA president Gerald Hemphill.
In 2021, the Biden administration issued an executive order directing the FIO to assess the climate risks facing insurance carriers and identify potential disruptions to coverage in climate-prone areas. in the climate.
After that, the FIO requested zip-code-level data from state insurance departments about property insurance coverage, liabilities, and losses. The office also announced its intention to conduct a climate-related financial risk data call through the Treasury, expanding its participation to areas such as flood insurance.
“In November 2016, PIA became the first national insurance association to publicly call for the repeal of the FIO, and it remains a top priority,” Hemphill added. “The Federal Insurance Office Abolishment Act will protect our strong state regulatory structure by fully repealing the FIO.”
The reintroduction of the bill closely follows PIA’s 2023 Advocacy Day, where PIA members from across the country urged their elected representatives to support the abolition of FIO.
Last month, a similar bill was introduced in the House by Representative Ben Cline.
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