Big “I” Responds to Long-Awaited FIO Report on Insurance Regulation
Agent and broker community expresses strong support for state regulation and welcomes call for enactment of NARAB II.
WASHINGTON, D.C., Dec. 12, 2013 – The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today commended the U.S. Department of Treasury’s Federal Insurance Office (FIO) for the release of the long-awaited report on “How To Modernize And Improve The System Of Insurance Regulation In The United States.” The report was required by the Dodd-Frank Act of 2010.
“The Big ’I’ has been eagerly awaiting the release of FIO’s modernization report for well over a year and we are actively reviewing the details,” says Charles Symington, Big “I” senior vice president of external and government affairs. “While we agree with the report’s conclusion that insurance regulation could be improved and modernized in certain areas, we strongly believe that any federal action should be targeted and limited with day-to-day regulation left in the in the hands of state officials. The state-based system of insurance regulation has served consumers and our economy well for decades. The Big ‘I’ strongly supports the continued preservation of this system and is ardently opposed to any direct infringement by the federal government.”
The report also specifically calls on Congress to enact the National Association of Registered Agents and Brokers (NARAB II) Act. It correctly notes that “consumers are detrimentally affected by the absence of uniformity and reciprocity in producer licensing” and that “NARAB II must provide producers an efficient and streamlined multistate licensing mechanism.” The Big “I” strongly supports NARAB II and believes its approach of using narrow and targeted federal legislation to address a long-standing, persistent problem in the market is the correct approach for modernizing insurance regulation.
“The Big ‘I’ commends FIO for its call on Congress to pass NARAB II. This bill is a perfect example of how to modernize insurance oversight without encroaching on state regulation,” continues Symington. “We welcome FIO’s support for NARAB II and look forward to working with Congress on this targeted approach.”
Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of approximately a quarter of a million agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address: www.independentagent.com.