The Nationwide Affiliation of Mutual Insurance coverage Firms and the Unbiased Insurance coverage Brokers & Brokers of America are the most recent from the business to hitch a name in help of a measure to abolish the Federal Insurance coverage Workplace.
The commerce teams on April 11 submitted a letter to Montana Congressman Troy Downing, who earlier this 12 months launched H.R. 643, the “Federal Insurance coverage Workplace Elimination Act.”
“Since [the FIO’s] inception in 2010, our associations have echoed issues from practical regulators over FIO’s potential for duplicative and overreaching workstreams,” NAMIC and Large I wrote to Downing, R-Mont., an insurance coverage commissioner earlier than operating for Congress final 12 months. “Sadly, these issues have been validated over the course of the workplace’s existence, because it has undermined state-based regulation and exerted inappropriate stress on business members, together with unwarranted threats of subpoenas.
“These actions cross straight into work already being carried out by state regulators, creating inconsistent expectations, duplication, and prices which might be in the end borne by shoppers.”
The help to eliminate the FIO, created in 2010 as a part of the Dodd-Frank Wall Avenue Reform and Shopper Safety Act, is the most recent from the business. The Nationwide Affiliation of Insurance coverage Commissioners (NAIC) this 12 months launched its 2025 agenda, which included the elimination of the U.S. Treasury’s FIO. On the finish of 2024, 9 insurance coverage commissioners urged the Division of Authorities Effectivity (DOGE) to look at the FIO.
“Since its inception, FIO has fluctuated between ineffectiveness and outright dishonesty in it dealings with the states,” mentioned the commissioners of their letter to DOGE.
NAMIC and Large I mentioned lots of FIO’s stories or positions have “[failed] to incorporate factual and data-driven contributions and views.”
The newest publication was an early 2025 report on the affordability and availability of insurance coverage that the FIO known as the “most complete knowledge on owners insurance coverage in historical past.” Predictably, the opinion was not shared by the insurance coverage business.
Associated: Treasury’s FIO Releases ‘Flawed’ Homeowners Insurance Report
David A. Sampson, CEO of the American Property Casualty Insurers Affiliation of America (APCIA), on the time mentioned the FIO report “supplies an incomplete rationalization in regards to the affordability and availability of insurance coverage.” NAMIC’s Jimi Grande, senior vp of federal and political affairs, mentioned FIO’s report “is a frustration to anybody who understands the essential insurance coverage precept of matching fee to threat.”
The elimination of FIO isn’t a brand new concept. In 2023, GOP members of the Home of Representatives launched a invoice to ditch FIO.
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