“The proper place for the regulation of insurance is at the state level”
Sponsored by Senator Ted Cruz, the Federal Insurance Office Abolishment Act or S. 1694 aims to safeguard the state insurance regulatory system by repealing the FIO, which was initially formed under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
PIA has consistently opposed the establishment of the FIO, stating that its duties overlap with other government offices and state insurance commissioners.
“The proper place for the regulation of insurance is at the state level, and the state regulation of insurance has served the insurance industry and consumers well for over one hundred years,” said PIA president Gerald Hemphill.
In 2021, the Biden administration issued an executive order directing the FIO to assess climate risks faced by insurance carriers and identify potential coverage disruptions in areas prone to climate change.
Subsequently, the FIO requested zip-code-level data from state insurance departments regarding property insurance coverage, liabilities, and losses. The office also announced its intention to conduct a climate-related financial risk data call through the Treasury, expanding its involvement into areas such as flood insurance.
“In November 2016, PIA became the first national insurance association to publicly call for the repeal of the FIO, and it remains a top priority,” Hemphill said further. “The Federal Insurance Office Abolishment Act would protect our strong state regulatory structure by fully repealing the FIO.”
The reintroduction of the bill closely follows PIA’s 2023 Advocacy Day, during which PIA members from across the country urged their elected representatives to support the abolishment of the FIO.
Last month, an identical bill was introduced in the House by Representative Ben Cline.
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