The Property Casualty Insurers Association of America (PCI) voiced its support for a bill that would reform the Federal Insurance Office (FIO).
Federal Insurance Office Reform Act of 2017 (H.R. 3861), sponsored by Reps. Sean Duffy (R-WI) and Denny Heck (D-WA), would limit FIO’s role largely to international matters. It also allows the FIO to speak for the Treasury — but not other federal agencies — in international discussions.
It would also authorize FIO to coordinate federal insurance policy and require FIO to achieve consensus with the states before advocating or agreeing to positions in international forums, such as the International Association of Insurance Supervisors.
In addition, it would eliminate FIO’s authority relating to purely domestic issues, including the authority to engage in broad information-gathering authority and reporting obligations.
However, the proposed legislation would retain FIO’s existing authority to monitor all aspects of the insurance industry and advise the Treasury Secretary on the administration of the Terrorism Risk Insurance Act.
It would also continue the authority of Treasury and the United States Trade Representative to negotiate and enter covered agreements, but the secretary, not the FIO director, would have the authority to determine whether a covered agreement pre-empts state law. Further, it said that a covered agreement may not include new prudential requirements for U.S. insurers.
Nat Wienecke, senior vice president, federal government relations at the Property Casualty Insurers Association of America applauded the FIO reform bill.
“This bipartisan legislation will reduce FIO’s domestic footprint, eliminate its quasi-regulatory authority, and refocus the FIO on international matters, where it can play an appropriate role in coordinating with the states to develop consensus on U.S. international insurance policy,” Wienecke said. “The bill also limits the bureaucracy from expanding beyond its core mission.”