The new president of the National Association of Professional Insurance Agents said attempts to put regulation of the insurance industry into the hands of the federal government is an effort by some to create an uneven playing field for independent agents.

"Over the past decade, professional insurance agents have faced a series of challenges," said Kenneth R. Auerbach, the newly-installed president of the Alexandria, Va.-based PIA said in a statement. "We have seen attempts to take away our commissions, our contingencies, our market share and our clients.

"When I arrived here at PIA National, I, like many of you, was invigorated by a new problem we were facing--the offensive effort to steal our commissions and our contingencies. Now I find myself impassioned by a new struggle--the attempted federal takeover of insurance."

"I know a little something about takeovers," Mr. Auerbach, an insurance agency owner who is also an attorney, continued. "I used to serve on a legal team defending against hostile corporate takeovers.

"As in the corporate takeover arena, the supporters of a federal insurance scheme attempt to seduce the stakeholders, including you and me, including our clients, with the hollow promises of a better regime--better perhaps for multinational carriers and large brokerage houses. But not for PIA members, who are Main Street agents."

Mr. Auerbach said an optional federal charter, which would not be optional in practice, is being pushed by a handful of large banks, securities firms and a few carriers who want to expand their market share by creating a parallel federal regulatory system to gain an unfair advantage over their competitors--particularly regional and mutual insurance carriers, many of whom are represented by PIA members.

"PIA's message is positive," he said. "PIA believes the state system of insurance regulation works well. Yes, it needs improvements. Yes, it needs more modernization. But we shouldn't toss out a system that works so well for consumers and has provided soundness and stability for our industry during our nation's current economic crisis."

Mr. Auerbach, who will serve a one year term, previously served as PIA's point person on agent commission disclosure issues. As chairman of the PIA National Business Issues Committee, he was a leader in the association's effort to challenge attempts by then-New York State Attorney General Eliot Spitzer to ban contingent commissions.

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U.S. Insurance Regulation Harmful To Agents PIA President Says

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