Proposed US federal regulation bill divides the insurance industry
Proposed legislation for an optional US federal insurance charter has firmly divided the US insurance industry as advocates seek to modernise the existing state-based regulatory system.
California and Illinois representatives have proposed legislation that would create an Office of National Insurance to oversee the US insurance industry in place of more than 50 state regulators.
Critics describe the existing state-based system as inefficient and harmful to international trade.
Major insurance lobby groups such as the American Insurance Association, the Council of Insurance Agents & Brokers and the Risk and Insurance Management Society support the push to adopt federal measures, but there’s also strident opposition.
National Conference of Insurance Legislators officials claim a federal charter would “irreparably damage insurance oversight by promoting regulatory arbitrage and substantially weaken consumer protection”.
The National Association of Mutual Insurance Companies is also against federal regulation.
The US Government Accountability Office was supportive of federal regulation in a recent report, while analysts at Fitch Ratings have previously said US federal governance is “inevitable”.
California and Illinois representatives have proposed legislation that would create an Office of National Insurance to oversee the US insurance industry in place of more than 50 state regulators.
Critics describe the existing state-based system as inefficient and harmful to international trade.
Major insurance lobby groups such as the American Insurance Association, the Council of Insurance Agents & Brokers and the Risk and Insurance Management Society support the push to adopt federal measures, but there’s also strident opposition.
National Conference of Insurance Legislators officials claim a federal charter would “irreparably damage insurance oversight by promoting regulatory arbitrage and substantially weaken consumer protection”.
The National Association of Mutual Insurance Companies is also against federal regulation.
The US Government Accountability Office was supportive of federal regulation in a recent report, while analysts at Fitch Ratings have previously said US federal governance is “inevitable”.