The 50 states no longer have exclusive control over what goes on in insurance.
Federal regulations have forced carriers to answer to another authority.
Will the federal government one day control the world of insurance the way it controls other aspects of the financial services field? Jamie Bisker, insurance research director for the research and consulting firm TowerGroup, believes such control will take place and discusses the possibility in his report entitled Recent Regulations Affecting the Insurance Industry. I think, eventually, the federalization of insurance, just like banking, will occur. Its only a question of how long it will take, he says.
The federal government has been inching into the insurance industry over the last decade with measures such as the Gramm Leach Bliley Act, HIPAA, the Sarbanes-Oxley Act, the USA PATRIOT Act, and the expansion of the OFACregulations. Bisker says the National Association of Insurance Commissioners (NAIC) has rallied opposition to a federal takeover of industry regulation, but he feels it is more of a cultural battle being waged than one that involves logic.
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