U.S. Treasury Department in Washington. Photo: Diego M. Radzinschi/ALM
Two national insurance trade organizations recently doubled down on their support of the Federal Insurance Office Elimination Act, a bill that proposes eliminating the Federal Insurance Office (FIO), an agency within the U.S. Treasury Department, and unseating the FIO director in order to fully place insurance regulatory oversight with the states.
The National Association of Professional Insurance Agents (PIA), the National Association of Mutual Insurance Companies (NAMIC), and the Independent Insurance Agents & Brokers of America (Big “I”) signaled support for H.R. 643 when Rep. Troy Downing (MT-R) introduced the bill in January. It arrived on the heels of a December 2024 letter to Elon Musk and the Department of Government Efficiency from several state insurance commissioners recommending the abolishment of the FIO.
“Preserving and respecting states’ primary role as insurance regulators” also topped the 2025 agenda for the National Association of Insurance Commissioners (NAIC).
The new bill picks up efforts initiated in 2023 to eliminate the FIO as well as a similar push during President Donald Trump’s first term.
Formed in 2010 as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act, the FIO is charged with, among other things, monitoring the insurance industry, safeguarding insurance access for “underserved communities,” and representing the federal government’s interests in international insurance concerns.
“The law is clear. Regulation of the insurance industry rests with the states, not big government,” Rep. Downing said in a press release about the 2025 bill. The “FIO is a duplicative federal bureaucracy whose existence hinders the efforts of state regulators better equipped to address the insurance needs of their communities.”
In the more recent letter dated April 11, 2025, NAMIC and PIA thanked the Congressman for his work on the act, particularly in light of his experience as a former Montana Insurance Commissioner. It read: “We were pleased to see current insurance regulators recently follow your lead in calling for the elimination of the office, which they note ‘stands in direct conflict with the states’ role as primary regulators.’”
Eliminating the FIO should not interfere with other federal insurance activities including administration of the Terrorism Risk Insurance Program as well as the National Flood Insurance Program.
“FIO has become a tool for political agendas, overreaching and creating confusion and burdensome costs for consumers,” Jim Grande with NAMIC said in a press release when HR. 643 was introduced in January.
PIA CEO Mike Skiados echoed that sentiment. “The proper place for the regulation of insurance is at the state level, which has served the insurance industry and consumers well for over a century and is better positioned to protect consumers in the future,” he said in the same public statement.
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