WASHINGTON — The Federal Insurance Office's report on insurance regulatory modernization is meant to address “the world as it is,” FIO Director Michael McRaith said Wednesday.
Mr. McRaith said in preparing the report, which was issued in December, the drafters determined that the United States should build on the current hybrid system of state and federal insurance regulation.
Speaking Wednesday at Indiana State University's 10th annual Network Financial Institute insurance public policy summit, Mr. McRaith said even backers of state insurance regulation support the idea of some federal role in the issue.
He cited legislation that would establish the National Association of Registered Agents and Brokers as an example of a “federal solution to a multistate problem.”
The National Association of Registered Agents and Brokers Reform Act of 2014, which was contained in a flood insurance bill passed by the Senate earlier this year, would streamline the licensing process for brokers and agents seeking to sell insurance in multiple states, an idea that enjoys widespread industry support.
Mr. McRaith added that status reports and further work on insurance regulation will be forthcoming from FIO.