PIA Calls for Repeal of Federal Insurance Office

The election of Donald Trump as president and a Republican majority in both houses of Congress will bring about a unique opportunity to reexamine the regulatory framework for insurance. As part of regulatory reform, PIA calls on policymakers to fully repeal the Federal Insurance Office (FIO).

“With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), we ask that they repeal the FIO,” said PIA National Vice President of Government Relations Jon Gentile. “A June 2013 report issued by the Government Accountability Office (GAO) found the state-based system of insurance regulation helped to mitigate the negative effects of the financial crisis on our industry. This report highlights the unnecessary bureaucracy that the FIO represents.  Our longstanding and robust state-based insurance regulatory regime does not require this level of federal oversight.”

“If the goal is to eliminate unnecessary federal regulation, getting rid of the FIO makes good sense,” Gentile said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states. PIA will remain vigilant in its efforts to ensure that no new paths to the federal regulation of insurance are created as part of any Dodd-Frank rollback.”

With control of both houses of Congress and the White House, Republicans are likely to concentrate on the broad goals of reducing regulations, cutting taxes, and generally pursuing business-friendly policies that promote economic growth. PIA looks forward to working with President-elect Trump and the 115th Congress to achieve these goals.