Insurance Regulation Takes Center Stage on the Hill

September was a big month for insurance regulatory issues on Capitol Hill. The Financial Stability Oversight Council (FSOC), three bipartisan state insurance regulation bills and an insurance agreement between the U.S. and the European Union (EU) were all front and center.

Here is a recap:

• FSOC: Legislation to allow Roy Woodall, a former state insurance commissioner from Kentucky to continue to serve on FSOC until a replacement is appointed was signed by the President on Sept. 27. The position is important because FSOC has the power to designate insurance companies as systemically important non-financial institutions, making them subject to enhanced federal regulation.
• H.R. 3861: Reps. Sean Duffy (R-Wisconsin) and Denny Heck (D-Washington) introduced “The Federal Insurance Office Reform Act” on Sept. 28. The bill aims to restrict the authority of the Federal Insurance Office (FIO). The Big “I” supports eliminating or significantly restricting the FIO.
• H.R. 3762: Reps. Duffy and Heck also introduced “The International Insurance Standards Act” on Sept. 13, which would require federal officials to oppose international standards and actions that are inconsistent with state insurance law. The Big “I” supports this legislation.
• H.R. 3746: Reps. Duffy and Gwen Moore (D-Wisconsin) introduced “The Business of Insurance Regulatory Reform Act,” on Sept. 12. The bill seeks to clarify that the Consumer Financial Protection Bureau’s regulatory authority does not extend to state insurance markets. The Big “I” recently submitted a joint letter supporting this legislation.
• U.S. and EU Agreement: The U.S. and the EU finalized an agreement on the regulation of multi-national insurance companies on Sept. 25. The agreement addresses three areas: group supervision, reinsurance and the exchange of information between supervisory authorities. H.R. 3762 would affect future international insurance agreements but not this agreement.

Stay tuned to News & Views for updates as Big “I” supported insurance regulatory bills move through the legislative process. For decades, the Big “I” has been a leading supporter of a modernized state regulatory system. The association strongly opposes any form of federal regulation of insurance, whether optional, mandatory or dual.

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