Posted on 03 Dec 2009
Members of the House Financial Services Committee adopted important revisions to the Federal Insurance Office (FIO) legislation on Tuesday, according to the Property Casualty Insurers Association of America (PCI). At PCI's urging, the amended legislation now includes provisions that will help reduce costs to consumers in the insurance marketplace and provide greater efficiency to the oversight process.
In particular, PCI appreciates the House Financial Services Committee’s adoption of an amendment by Reps. Dennis Moore (D-Kan.), Lynn Jenkins (R-Kan.), and Suzanne Kosmas (D-Fla.) that reduces unnecessary and duplicative regulatory burdens on insurers.
Under the committee bill, the FIO was required to monitor all aspects of the insurance industry, a responsibility already performed by 50 state regulators. Instead, today’s amendment requires the FIO to obtain information from regulators or other public sources where it has already been collected, rather than asking companies to produce it a second time. The bill language also now requires the FIO to demonstrate a need for information it may request. This will help strike the proper balance between the federal government’s need for relevant industry information while allowing companies to focus resources on job creation instead of producing duplicative and costly government data reports.
“PCI applauds the adoption of this amendment that protects consumers and is mindful of the cost of duplicative, unnecessary data requests,” said David A. Sampson, PCI’s president and CEO. “These commonsense measures will help employers and support a healthy and diverse insurance marketplace for consumers,” said Sampson.