Is the Independent Insurance Agents and Brokers of America lobbying against federal regulation out of fear it would facilitate more direct sales via the Web and telephone, thus bypassing its members? That's the ridiculous charge leveled by Datamonitor, a global analytical firm, which contends that while IIABA emphasizes concern for consumer protection, it has a hidden, self-serving agenda.

IIABA's "recommendation to keep the state-based regulatory structure intact is not wholly in the interest of the consumer...Indeed, the current regulatory regime favors agents and brokers, at the expense of the consumer, by making it difficult for insurers to sell direct," wrote Jonathan Steiman, a Datamonitor analyst, in a Feb. 17 "Independent Analyst Comment."

"IIABA's reasons for opposing the development of an effective federal regulator are simple," according to Datamonitor. "A federally regulated insurance commission would accelerate the amount of premiums sold direct over the Internet or through call centers. This is good for both insurers and consumers, but terrible for agents and brokers, which has provoked the IIABA's tenuously argued opposition."

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