The US insurance industry has welcomed government moves to create the National Association of Registered Agents and Brokers, to streamline insurance across state borders.

The House of Representatives passed the legislation earlier this month and the Senate now must approve it.

Individual states will continue to regulate insurance, but the association will set membership requirements for non-resident insurance producers and brokers.

The National Association of Insurance Commissioners supports the move, saying it will improve the multi-state agent licensing process while preserving state enforcement.

Risk and Insurance Management Society director Carolyn Snow says allowing cross-border trade will increase competition and may lower rates. She says multi-state licensing will allow businesses that cross borders to work with only one broker or agent.