Lawmakers agree on scope of federal insurance office
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WASHINGTONHouse and Senate conferees working on a compromise financial services reform bill have reached agreement on the scope of a proposed insurance office within the Treasury Department.
According to a document agreed upon by the conferees, the new office would be called the Federal Insurance Office, the name used in the House version of financial services regulatory reform passed late last year.
The new office would have less extensive powers to pre-empt state insurance regulators in certain international insurance matters than would have been granted a proposed National Office of Insurance under the Senate’s version of financial services regulatory reform. Under the compromise, the office would be required to notify certain House and Senate committees of its intention to pre-empt state law.
The office also would provide expertise and guidance to federal authorities on insurance matters and provide reports on insurance and reinsurance matters to Congress. It would have no authority over health insurance.
The property/casualty insurance industry has been split about the scope of the proposed office.
The regulatory reform measure also contains a provision that would ease risk managers’ access to surplus lines markets and reform reinsurance regulation. That provision, which enjoyed widespread support from risk managers, insurers and brokers alike, is expected to be part of any final bill.
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