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P/C industry hails new chair of House panel

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WASHINGTON—The incoming chairman of the House Financial Services Committee likely will to try to repeal certain aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, insurance industry observers say.

But the efforts of Chairman-elect Spencer Bachus, R-Ala., probably will not greatly involve the measure's property/casualty provisions, observers say.

House Republicans last week chose Rep. Bachus to head the committee when the new Republican-controlled House convenes next month. As the panel's ranking member the past four years, he criticized some government actions in its rescue of American International Group Inc.

Insurance industry observers hailed Rep. Bachus' ascension to chairman.

“I don't know anyone in the insurance community who isn't pleased by the upcoming chairmanship of Congressman Bachus,” said Joel Wood, senior vp at the Council of Insurance Agents & Brokers in Washington. He “has a good sense of the balance between assuring safety and soundness, and regulatory overreach.”

Mr. Wood said he expects Rep. Bachus to try to roll back some Dodd-Frank provisions, but “I don't expect much of that to impact the insurance industry.” He added that Rep. Bachus was a “key player” in passage of the “very good surplus lines and reinsurance provisions” of the legislation.

Ben McKay, a senior vp in the Property Casualty Insurers Assn. of America's Washington office, predicted there would be “robust hearings” on insurance aspects of the bill. He also noted that Rep. Bachus supports a narrow role for the new Federal Insurance Office and backs state regulation of the industry.

Agreeing that repealing parts of Dodd-Frank will be a large part of the Bachus agenda, Marliss McManus, senior federal affairs director in the National Assn. of Mutual Insurance Cos.' Washington office, said she expects insurance “for the most part will be a pretty quiet subject.” She also said she expects the committee to address reform of the National Flood Insurance Program, which is slated to expire Sept. 30, 2011.

The American Insurance Assn. “will continue to reinforce the distinctions between insurance and other financial services,” as the committee deals with Dodd-Frank, Leigh Ann Pusey, AIA president and CEO, said in a statement.