The trade body representing independent insurance agents has joined the call for the new administration to repeal the law that created the Federal Insurance Office (FIO).
In a statement, the National Association of Professional Insurance Agents (PIA) said that the dominance of the Republican Party in the current administration creates a “unique opportunity” to re-examine the present regulatory framework governing the insurance industry.
“With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we ask that they repeal the FIO,” said PIA national vice president of government relations Jon Gentile in the statement.
“A June 2013 report issued by the Government Accountability Office found that 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,” he added.
“If the goal is to eliminate unnecessary federal regulation, getting rid of the FIO makes good sense,” Gentile continued. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states. PIA will also 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 President-elect Donald Trump occupying the highest office in the US, and the Republicans in control of both houses of Congress, PIA said that the new governments is likely to focus on broad reforms concentrated on reducing regulations, cutting taxes and pursuing generally business-friendly policies aimed at promoting economic growth.