Lawmakers and industry and government officials are pushing for a robust role abroad for the U.S. Federal Insurance Office (FIO) to increase international competitiveness for the U.S. insurance industry.
In a May 17 hearing before the Insurance, Housing and Community Opportunity Subcommittee of the House Financial Services Committee, chaired by Rep. Judy Biggert, R-Ill., insurers, regulators and consumer advocates were united in emphasizing a need to work together to create clarity and consistency so insurers can expand their markets abroad.
Insurance executives implored Congress, FIO, the office of the United States Trade Representative (USTR) and other officials to emphasize the need to resolve conflicts over trade, transparency, capital standards, conflicting regulatory standards, and other supervisory and free-market concerns.
The force and promise of FIO were repeatedly trumpeted in testimony, with a chorus of support for FIO's role internationally and even domestically from all quarters.
“FIO can be of particular help in ensuring the USTR's success by using its bully pulpit to advance the interests of the U.S. insurance sector and by coordinating efforts to resolve any conflicts between the federal government and states over insurance,” the Council of Insurance Agents and Brokers said in a statement.
“The hearing helped assure that insurance issues have a high place on the U.S. international-engagement agenda and put Congress on the field of play in representing U.S. interests, along with FIO, USTR, other federal agencies and the NAIC,” says David Snyder, vice president of the American Insurance Association.
Lawmakers and insurers seemed troubled by the potential treatment of insurers by regulators under a bank-centric model with Federal Reserve supervision.
“When a traditional insurance business fails, not every car owner is going to get into a car accident immediately upon dissolving,” FIO Director Michael McRaith told the panel.
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