Last week, Rep. Blaine Luetkemeyer (R-Missouri) introduced a bill that aims to create procedural “checks” for federal officials in international insurance negotiations to ensure the U.S. state-based system of insurance regulation remains strong.

Rep. Luetkemeyer, who is Chairman of the House Financial Services Housing and Insurance Subcommittee, is the lead sponsor of H.R. 5143, the “Transparent Insurance Standards Act of 2016.”

Concern is growing that international insurance standards could lead to market consolidation and lower insurer capacity in the U.S., resulting in fewer markets for independent agents. The Big “I”-supported legislation would establish a series of requirements federal officials must meet before they may consent to adopting certain international insurance standards, such as ensuring that any standard would not require the U.S. to change the way it regulates insurance. The bill also sets negotiating objectives for U.S. parties to follow, including considering the impact of any standards on policyholder protection, as well as the availability and cost of insurance products.

H.R. 5143 further requires consultation with state insurance regulators on the development of international insurance standards and explicitly prohibits the Treasury Department—including the Federal Insurance Office—from expanding its authority through certain international agreements. The Big “I” supports the state insurance regulatory system and is concerned with federal encroachment into state regulation.

The Big “I” is pleased that Rep. Luetkemeyer has introduced this legislation to address transparency in international negotiations related to insurance. The association continues working with Congress to help ensure that any legislation regarding international insurance policy recognizes the state-based system of insurance regulation in the U.S. has protected consumers and promoted competitive insurance markets for more than 150 years.

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