Insurance Coalition Responds to OFC Comments
A coalition of insurance companies, trade associations, and agents and brokers known as COFIR (Coalition Opposed to a Federal Insurance Regulator) today expressed concern about comments made by Treasury Secretary Henry Paulson on Wednesday, January 31, 2007 before the Senate Committee on Banking, Housing and Urban Affairs regarding an optional federal charter for insurance regulation.
While indicating that these were only his personal thoughts, Secretary Paulson responded to a question by expressing interest in the idea of an optional federal charter and his belief that this issue would receive careful consideration.
COFIR Executive Director Greg Wren said that Secretary Paulson’s comments about the optional charter are somewhat troubling to his group, but that he understands that this is not an official position and welcomes the opportunity to discuss this issue in more detail. “COFIR members are hopeful that we can establish a dialogue with the Treasury Department as this issue is discussed and debated,” Wren said. He added, “I am hopeful that no official position will be taken by the Secretary and the Bush Administration before our members have an opportunity to express our concerns and views on this matter.”
Federal legislation to create an optional federal charter to regulate property and casualty, life insurance and health insurance companies, currently regulated by the states, was introduced during the 109 th Congress and similar legislation is expected this session. “Creating a massive new federal bureaucracy far removed from the states and centralizing it in Washington will only complicate issues for insurance companies, agents and brokers and, most important, the consumers of insurance services,” Wren added.
Wren further stated that COFIR favors reform of existing state insurance regulation through targeted federal legislation but believes empowering a federal regulator to oversee that reform is not a viable solution.
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