The announcement of future hearings on insurance industry ills from Sen. Richard Shelby, R-Ala., came during a committee session on the state of the financial services industry five years after enactment of the Gramm-Leach-Bliley Act. Lobbyists and congressional staffers believed there was little support for dealing with insurance industry concerns by Sen. Shelby, or by the panel, this year.

Most of the interest on insurance regulation has been voiced by the leadership of the House Financial Services Committee. The thinking prior to Mr. Shelby's comments was that the House panel might pass a bill supported by state insurance regulators and industry establishing a so-called "road map" of federal involvement, and that the bill might perhaps pass the House, but die there.

One reason is that Sen. Shelby is running for re-election, and putting pressure on insurance interests in the state, especially regulators, was something not expected to interest Mr. Shelby. Another reason is an historic tug-of-war over insurance oversight the House panel has long had with the Senate Committee.

Despite that, Mr. Shelby said, "Later this year, I am planning to bring the regulators before the committee to complete our discussion about the law. We also plan to hold further hearings concerning the state of the insurance industry in the post-GLB environment."

A representative of the insurance agents industry, Robert Tubertini, head of the government relations committee of the Independent Insurance Agents and Brokers of America, supported the "road map" approach in his testimony.

Before the committee, a representative of the Financial Services Roundtable, used the occasion to voice support for an optional federal charter.

While supported by the American Council of Life Insurers and some property/casualty companies and trade groups, federal regulation creating such a charter has little political support on Capitol Hill, especially during an election year.