Tuesday, July 21 marked the fifth anniversary of Dodd-Frank. Originally passed to address the financial crisis of 2008, this massive bill has faced a long and often divisive implementation process, with parts of the legislation still awaiting full implementation.

A number of Dodd-Frank provisions impact insurance, and while day-to-day insurance regulation remains in the hands of the states, these provisions have paved the way to an increased federal role in insurance regulation.

Title V of Dodd-Frank established the Federal Insurance Office (FIO), an informational office housed within the Department of Treasury. The FIO’s biggest responsibilities involve monitoring the insurance industry for regulatory gaps and assisting with the negotiation of international insurance agreements. Perhaps the FIO’s most controversial task involves its participation on the Financial Stability Oversight Council (FSOC), which is charged with identifying and labeling non-bank financial institutions as systemically significant (SIFIs). Once labeled an SIFI, an institution must comply with heightened prudential standards and oversight from the Federal Reserve (Fed).

To date, the FSOC has named three insurers SIFIs: AIG, MetLife and Prudential. The dual financial regulation created by this designation has caused significant confusion within the marketplace and prompted one of the only Dodd-Frank technical fix bills to pass Congress since it became law. Passed at the end of 2014, the Insurance Capital Standards Clarification Act of 2014 provided relief to insurers categorized as SIFIs by making it clear that the Fed should not impose bank-centric capital standards on insurance companies. The Big “I” has always opposed a “one size fits all” federal approach to regulating the insurance market and supported this legislation. However, concern about how the new capital standards will apply to insurers is still a reality for the industry and adds additional uncertainty to the marketplace.

The FIO also has a role on the Financial Stability Board, the international body that makes recommendations on the prudential oversight of internationally active financial institutions including insurers. Congress has introduced legislation to address transparency concerns regarding the creation of international capital standards for global insures, but some Democrats in Congress remain opposed to any Dodd-Frank changes. The inability to address potential unintended consequences the law creates continues to blur the lines for the future of insurance regulation.

The Big “I” has always strongly supported state regulation of insurance and opposed any day-to-day federal oversight of the market. Opposing federal regulation of insurance and educating Congress on the detrimental impact an increased federal role in regulation could have on the market and consumers remains a priority for the association.

Jen McPhillips is Big “I” senior director of federal government affairs.