An independent agents group is asking why the National Association of Insurance Commissioners has not entered the debate over proposed federal legislation that would end insurers' limited antitrust exemption.
Professional Insurance Agents of the Western Alliance said such a measure could negatively impact the future of the association and its members.
Clark Sitzes, PIA West executive vice president, in an open letter sent to Congress as well, inquired why the NAIC had not commented on the issue of whether to eliminate the McCarran-Ferguson Act provision which gives states authority over the regulation of insurance.
"At a time when this industry needs your leadership the most, you are nowhere to be found," wrote Mr. Sitzes. "…You certainly must agree with us that regulation of the insurance industry is best kept at the state and local level."
He noted that one of the association's members, Oregon Insurance Administrator Joel Ario, speaking on the negative impact such regulation would have on consumers, had said, "Can you imagine a federal call center?"
Mr. Sitzes wrote that Mike McGavick, former chief executive of Safeco, in a speech to the association warned that "stultifying regulations are coming soon" and the insurance industry needs to do some serious retooling of its image to stave off harmful regulatory changes.
Mr. Sitzes continued, "It is obvious to everyone that insurance industry reform is a high priority to this session of Congress. To the NAIC we say that reform now needs to be your high priority.
"However, that reform needs to come from the bottom up and not from the top down. We need you to come forward with some concrete proposals to streamline this industry and to make company and client connections between one state and another seamless.
"We need you, the National Association of Insurance Commissioners, to be leaders in this much-need reform.
"Hopefully, those entrusted to regulate this industry at the state level and who have failed to step up and be heard at this critical juncture will hear and respond to this message," he added. "It is also our hope that Congress will slow down and think through the changes they are considering."
A spokeswoman for the NAIC said one of its regulatory committees will be meeting and would probably discuss the letter. It is expected to issue a comment tomorrow on the letter from the Vancouver, Wash.-based association.
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