The fear is that if Congress severely restricts or bans sharing of data and policy language, the consequences would be severe, not just for the industry, but for buyers, who would have a harder time comparing policies and fewer carriers to quote their risks, as smaller insurers without access to huge databases fall by the wayside.

The other problem is that the bill is rather thin on detailjust a couple of pages, at last viewing–leaving the industry at sea if it should be passed as it stands.

Just how involved would the FTC and Justice Department be in overseeing the industrys day-to-day operations? And how could state regulators function with two federal agencies looking over their shoulders, authorized to second-guess and overrule their decisions, or take matters out of their hands entirely?

Wouldnt Congress eventually have to create a federal regulatory bureaucracy to provide a standard operating procedure for insurance oversight? I would think so.

That would not be a bad thing in the eyes of many in the industry who support establishment of an optional federal charteralthough few, I believe, want to achieve their goal via this dangerous route.

For example, even a strong OFC proponent–the Council of Insurance Agents and Brokerssay this bill, as written, would do more harm than good.

We at The Council believe that enactment of this legislation would indeed hurt smaller and regional carriers, specifically if there are no accommodations for the needed services of the Insurance Services Office, Joel Wood, the CIABs senior vice president of government affairs, told NUs Washington editor, Dave Postal. They help facilitate insurer access to markets. Limiting them would do violence to many markets.

He added that a reasonable debate about the scope of antitrust immunity is one thing, but unfortunately this legislation seems aimed at punishing the industry.

Hes absolutely right. This bill is pure petulance on the part of members of Congress all too eager to beat up an easy target. Some insurers have not done themselves proud with their handling of Katrina claims, thats for sure. But to turn the entire industry upside down and throw away a proven method of doing business that clearly benefits buyers would be a pyrrhic victory.

Where do we go from here? You tell me. How would stripping away the antitrust exemption impact the industry? Could all insurers adapt, or would some go under? Would policyholders benefit in any way? Im eager to hear from you.