House Holds International Insurance Regulation Hearing

The Big “I” continues its involvement in discussions regarding international insurance issues that could impact U.S. regulation.

Today, the U.S. House of Representatives Financial Services Committee and Housing and Insurance Subcommittee held a hearing, “The Impact of Insurance Regulatory Standards on the Competitiveness of U.S. Insurers: Part II.” The hearing followed up on a previous hearing held in April 2015, which featured testimony from the Federal Insurance Office, the Federal Reserve Board of Governors and the National Association of Insurance Commissioners.

While the first hearing focused on the viewpoints of regulators, this hearing featured perspectives from insurers and academia. Specifically, the hearing examined various international regulatory standards currently under debate. Witnesses discussed the best way to coordinate global and domestic insurance policy, promote competitive U.S. insurance markets, and enhance cooperation between state and federal entities on international and domestic issues.

The hearing also reviewed draft legislation aimed at creating procedural “checks” for federal officials in international insurance negotiations to ensure the U.S. state-based system of insurance regulation remains strong. The legislation would establish a series of requirements federal officials must meet before they may agree to, accept, establish, enter into or consent to the adoption of certain international insurance standards. The bill also sets negotiating objectives for U.S. parties to follow.

The Big “I” supports the primacy of state regulation and is concerned by federal encroachment into insurance regulation. The association continues working with Congress to help ensure that any legislation regarding international insurance policy recognizes that the state-based system of insurance regulation has protected consumers and promoted competitive markets for more than 150 years.

Jennifer Webb is Big “I” federal government affairs counsel.