Industry News

National Association of Professional Insurance Agents (PIA) Hails Decision

WASHINGTON – In a win for the state insurance regulatory system, the National Association of Professional Insurance Agents (PIA) is lauding an announcement that the Federal Insurance Office (FIO) will abandon its unprecedented effort to collect data on climate-related risks from property and casualty insurance carriers on behalf of the federal government. Instead, the National Association of Insurance Commissioners (NAIC) will now lead the effort.

“The Treasury Department’s delayed acknowledgement that the NAIC is well-suited to the collection of carrier data validates PIA’s long-held concerns over FIO conducting the data call itself,” said Lauren G. Pachman, Esq., PIA’s Counsel and Director of Regulatory Affairs. “PIA is optimistic that the NAIC, which routinely engages in industry data collection, will do so in a way that maximizes the utility of the data gathered and minimizes the burden on insurers.”

The FIO data call is being replaced by a novel arrangement between state insurance regulators and the NAIC, which had previously been pursuing its own, separate data collection effort. The new plan will empower the NAIC to spearhead the data call, the results of which are expected to be shared with the FIO later this year.

PIA opposed the creation of the FIO from the outset. In 2010, advocates of federal insurance regulation succeeded in getting the FIO established as part of the Wall Street Reform and Consumer Protection Act (Dodd-Frank)—but, along with others in industry, PIA successfully fought back repeated attempts to give this office broad authority. In 2016, PIA became the first national insurance association to publicly call for the repeal of the FIO and has since worked with allies in Congress to develop proposals to repeal or reform the office.

“This change represents a win for PIA, consumers, and the state insurance regulatory system,” said Jon Gentile, vice president of government relations for PIA. “The FIO’s long-overdue concession is further evidence that the FIO to needs be repealed or, at a minimum, meaningfully reformed. Our efforts to this end will continue.”

READ: PIA’s Campaign to Repeal or Meaningfully Reform the FIO