The National Association of Professional Insurance Agents (PIA) is proposing that the Federal Insurance Office be repealed.
The association points out that the combination of Donald Trump as president and a Republican majority in both houses of Congress presents a unique opportunity to re-examine the regulatory framework.
As part of any regulatory reform package for the financial services industry, PIA urges policymakers to fully repeal the Federal Insurance Office, added to the U.S. Department of the Treasury as part of the economic reform measures put in place after the Great Recession.
“With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we ask that they repeal the FIO,” said Jon Gentile, PIA's vice president of government relations. “A June 2013 report issued by the Government Accountability Office found that the state-based system of insurance regulation helped to mitigate the negative effects of the financial crisis on our industry. This report highlights the unnecessary bureaucracy that the FIO represents. Our longstanding and robust state-based insurance regulatory regime does not require this level of federal oversight.”
“If the goal is to eliminate unnecessary federal regulation, getting rid of the FIO makes good sense,” Gentile said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states. PIA will also remain vigilant in its efforts to ensure that no new paths to the federal regulation of insurance are created as part of any Dodd-Frank rollback.”
PIA will work with Trump and Congress
A traditional Republican agenda generally includes the goals of reducing regulations, cutting taxes and pursuing what are considered “business friendly” policies to promote economic growth.
With control of both houses of Congress and the White House, Republicans may be more likely to achieve many of these goals, and PIA says it looks forward to working with President-elect Trump and the 115th Congress on these initiatives.