FEDERAL INSURANCE OFFICE BILL PASSES HOUSE COMMITTEE
WASHINGTON, D.C., December 2, 2009 – Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), today issued a statement following action by the House Financial Services Committee which passed by H.R. 2609, the Federal Insurance Office Act of 2009 by a voice vote.
Ms. Pusey’s statement follows:
"Today’s vote by the House Financial Services Committee is a good first step in ensuring that the property-casualty insurance industry will finally have a voice at the national level. The federal government desperately needs to have the ability to create and empower an office that will understand how the insurance industry works, how it handles risk, utilizes capital, and meets the needs of its customers.
"The current state-based insurance regulatory system is not well-suited to bridge information or regulatory gaps that may arise in today’s complex and global economy. Creation of a Federal Insurance Office will help prevent future financial crises from occurring and will identify potential regulatory gaps that exist in the current financial regulatory structure.
"A necessary element of this legislation is the authority to negotiate international agreements on prudential insurance matters. While we remain supportive of the creation of this office, we still have concerns that the language contained in the current version of this legislation will not provide the office with the adequate authority it needs. Without such authority, it could limit the federal government’s ability to advocate our industry’s interest at the international level.
"We applaud the leadership of the House Financial Services Committee for their vote today and for their attention to this important issue. We look forward to continuing to work with them as other policymakers and the legislative process moves forward."