A bill designed to reduce duplicative federal insurance regulations is being applauded by the Property Casualty Insurers Association of America (PCI).
The State Insurance Regulation Preservation Act (H.R. 5059), introduced by Reps. Keith Rothfus (R-PA) and Joyce Beatty (D-OH), would leave the regulation of insurance companies to the states, as opposed to the Federal Reserve. Currently, insurance companies are regulated by both the states, and the Federal Reserve.
In this new legislation, the Federal Reserve would ensure that the holding company is well capitalized while leaving the day-to-day regulation to the states.
“PCI strongly supports the bipartisan efforts of Representatives Rothfus and Beatty to protect the time-tested state-based insurance regulatory system and for introducing the State Insurance Regulation Preservation Act,” Nat Wienecke, senior vice president, federal government relations at the Property Casualty Insurers Association of America (PCI), said.
He said the Federal Reserve Board’s duplicative examinations of well-capitalized insurers increase consumer costs and reduce competition.
“The Fed should be focused on the safety and soundness of banks and savings and loan institutions, not well-functioning state regulated insurers,” Wienecke said.
Wienecke said the bill would free up much-needed capital and allow more investment in the economy. This would benefit consumers and policyholders across the country, Wienecke said.