The US has moved a step closer to federal regulation of insurance with the release of draft legislation proposing a federal insurance office within the US Treasury.

Paul Kanjorski, Chairman of the House Financial Services Subcommittee on Capital Markets and Insurance, unveiled the Federal Insurance Office Bill last week.

It proposes a federal insurance office to monitor the insurance sector and “provide a unified voice on insurance matters for the US in global deliberations”.

“A federal insurance office will provide national policymakers with access to the information and resources needed to respond to crises, mitigate systemic risks and help ensure a well functioning financial system,” Mr Kanjorski said.

The bill is a development on similar proposals released earlier as it contains a number of amendments to initial proposals.