U.S. Sen. Katie Britt (R-AL) is among a group of senators who introduced a bill that would limit the authority of the Federal Insurance Office (FIO).
Britt’s bill, the Insurance Data Protection Act, would do several things. First, it would clarify that the FIO does not need subpoena power since it is intended to function as an informational body. It would also require the FIO to coordinate any data collection efforts with state insurance regulators and to assess all publicly available data and sources regarding the data being sought. These provisions are designed to limit unnecessary data inquiries and prevent duplicative efforts across the state and federal landscapes.
Finally, the bill sets forth confidentiality procedures and requirements governing the manner in which data can be used by financial regulators if collected from insurers.
The FIO is an office within the Treasury Department created in Dodd Frank to monitor the insurance sector and help provide information to policymakers and state regulators, as needed, without regulatory authority.
Britt and her fellow lawmakers are concerned that the Biden Administration has pressured FIO to overstep into the state-regulated insurance industry with its “Climate-Related Financial Risk Data Collection” in Oct. 2022. This executive order would require over 200 private insurance companies to provide to FIO with data on the effect of climate-related catastrophes on insurance availability and affordability for Americans.
“Our state insurance regulators have more than proven their ability to effectively and responsibly supervise the American insurance industry for over a century,” Britt said. “FIO should work with, not around, state insurance officials. Not only is FIO overstepping its lawful authority and trampling on Congressional intent, but the office is also utilizing private insurance data to advance the Biden Administration’s leftwing Green New Deal agenda. This commonsense legislation would ensure the state-regulated insurance market remains strong, prevent redundant and unnecessary data reporting that would needlessly cost millions of dollars and protect consumers’ sensitive information.”
Cosponsors of bill include U.S. Sens. Tim Scott (R-SC), Marsha Blackburn (R-TN), John Boozman (R-AR), Ted Budd (R-NC), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Steve Daines (R-MT), Bill Hagerty (R-TN), John Kennedy (R-LA), Cynthia Lummis (R-WY), Pete Ricketts (R-NE), Mike Rounds (R-SD), John Thune (R-SD), Thom Tillis (R-NC), and J.D. Vance (R-OH).
“As a former insurance agent, I know firsthand the importance of our state-based insurance regulation regime that has resulted in highly competitive and fair markets across the country – addressing local issues with local solutions. That’s why I’ve been alarmed by the Federal Insurance Office’s (FIO) efforts to overstep its authority and push the Biden administration’s radical climate agenda. This important bill will reign in the administration’s climate activists, ensure greater coordination between FIO and state insurance regulators, and protect both consumers’ and insurers’ data,” Scott said.
The National Association of Mutual Insurance Companies (NAMIC), American Property Casualty Insurance Association (APCIA), Association for Independent Agents (Big I), and Professional Insurance Agents (PIA) have endorsed this bill.