Bill to Eliminate FIO Introduced in the House

On Monday, legislation to eliminate the Federal Insurance Office (FIO) was introduced in the U.S. House of Representatives.

H.R. 1862—which the Big “I” supports—was introduced by Rep. Alex Mooney (R-West Virginia) and cosponsored by nine Republicans. No Democrats cosponsored the legislation. Rep. Mooney introduced similar legislation last year, but the Financial Services Committee did not consider it. Similarly, legislation to restrict the FIO passed the Financial Services Committee last year but did not see any further movement.

The FIO, which was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, serves as an information-gathering body housed within the U.S. Treasury Department. The FIO has several roles, including supporting international insurance agreements, administering the Terrorism Risk Insurance Program, and conducting reports and studies on the insurance market.

Over the years, the FIO has proven to have questionable value for insurance markets as well as consumers. As one of the leading supporters of a modernized state-based system of insurance regulation, the Big “I” supports eliminating or significantly restricting the authority of the FIO.

Joseph Cortina is Big “I” director of federal government affairs.