The Big “I” endorsed the act, which affirms the state regulatory system and abolishes the Federal Insurance Office (FIO).
On Jan. 23, Rep. Troy Downing (R-Montana) introduced H.R. 643, the “Federal Insurance Office Elimination Act" into the U.S. House of Representatives. The act affirms the state regulatory system and abolishes the Federal Insurance Office (FIO).
Rep. Downing, who served as Montana State Auditor and oversaw the state's securities and insurance industries before being elected to Congress, said, “The law is clear. Regulation of the insurance industry rests with the states, not big government. FIO is a duplicative federal bureaucracy whose existence hinders the efforts of state regulators better equipped to address the insurance needs of their communities."
In 1945, Congress passed the McCarran-Ferguson Act, solidifying states' regulatory authority over the insurance industry. The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act created the FIO as a subsidiary of the U.S. Department of the Treasury, charging FIO with the authority to monitor all aspects of the insurance sector, which many view as violating McCarran-Ferguson.
Recently, a multi-state coalition of insurance commissioners urged the Department of Government Efficiency (DOGE) to work with Rep. Downing to pass legislation to eliminate the FIO as part of its mission to streamline federal operations.
The Big “I" endorsed H.R. 643 and Nathan Riedel, Big “I" senior vice president of federal government affairs, was quoted in the Congressman's press release.
“Over the years, the Federal Insurance Office (FIO) has proven to have questionable value for insurance markets as well as consumers," Riedel said. “As one of the leading supporters of a strong and modernized state-based system of insurance regulation, the Big 'I' supports eliminating the FIO. We applaud Rep. Downing for his work to make this happen."
The Big “I" will continue to advocate for the importance of the state insurance regulatory system while advocating for independent insurance agents. Look out for updates in the News & Views e-newsletter.
Raaed Haddad is Big “I" director of federal government affairs.
