Big ‘I’ Talks Regulation with U.S. Department of Treasury

Late last month, Big “I” staff met with officials at the U.S. Department of Treasury and the Federal Insurance Office (FIO) to discuss the Trump Administration’s efforts to streamline the financial regulatory system.

Pursuant to an executive order issued earlier this year, the Treasury Department is currently reviewing federal oversight of certain aspects of the insurance market to ensure consistency with the Trump Administration’s “Core Principles” of financial regulation, which include:

• Empowering Americans to make independent financial decisions and informed choices in the marketplace, save for retirement and build wealth.
• Preventing taxpayer bailouts.
• Fostering economic growth and vibrant financial markets through more rigorous regulatory impact analysis.
• Enabling American companies to be competitive with foreign firms.
• Advancing American interests in international financial regulatory negotiations.
• Making regulation more efficient, effective and appropriately tailored.
• Restoring public accountability within federal financial regulatory agencies.

During the meeting, Big “I” staff:

• Expressed support for the state-based regulatory system and restriction or even elimination of FIO.
• Suggested ways that FIO and others could better incorporate feedback from insurance agents and brokers into international standard setting.
• Noted how the Department of Labor (DOL) fiduciary standard is negatively impacting Big “I” members.
• Stated the pressing need to appoint a board of directors to oversee the National Association of Registered Agents and Brokers.
• Expressed the association’s support for the Terrorism Risk Insurance Program and a modernized NFIP.
• Discussed potential treatment of small businesses under federal cyber security standards.

Treasury Department and FIO staff had numerous questions. After the meeting, the Big “I” submitted a letter with additional information on the DOL fiduciary rule, agent and broker licensing, and private flood insurance.

The Big “I” looks forward to continuing to work with the Administration to ensure that it considers the association’s priorities, and that the views of independent agents and brokers are heard.

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