US moves closer to single insurance regulator
US politicians have introduced legislation to create federal regulation of insurance, pledging to improve the current system where more than 50 state-based regulators run the industry.
Illinois congresswoman Melissa Bean last week joined California congressman Ed Royce to introduce the National Insurance Consumer Protection Act.
Pledging to “create a robust federal regulator for insurance to act as an alternative to the antiquated non-uniform system of state regulators,” they said the new law will improve consumer protection and choice and reduce risk.
Mr Royce cited the problems affecting AIG as a key reason for the bill’s introduction.
“Never before has the federal government been so invested in an industry it has no regulatory authority over,” he said. “Leaving the business of insurance regulation solely to the various state insurance commissioners, while the federal government provides taxpayer-funded assistance, is simply irresponsible.”
The bill establishes a system of regulation and supervision for nationally registered insurers, agents and brokers. The states would maintain responsibility for local insurers and brokers.
Illinois congresswoman Melissa Bean last week joined California congressman Ed Royce to introduce the National Insurance Consumer Protection Act.
Pledging to “create a robust federal regulator for insurance to act as an alternative to the antiquated non-uniform system of state regulators,” they said the new law will improve consumer protection and choice and reduce risk.
Mr Royce cited the problems affecting AIG as a key reason for the bill’s introduction.
“Never before has the federal government been so invested in an industry it has no regulatory authority over,” he said. “Leaving the business of insurance regulation solely to the various state insurance commissioners, while the federal government provides taxpayer-funded assistance, is simply irresponsible.”
The bill establishes a system of regulation and supervision for nationally registered insurers, agents and brokers. The states would maintain responsibility for local insurers and brokers.