Insurance Coalition Voices Opposition to Federal Charter
A coalition of insurance companies, trade associations, and agents and brokers known as COFIR (Coalition Opposed to a Federal Insurance Regulator) today announced its opposition to legislation introduced by Congressman Ed Royce (R-Calif.) aimed at creating a new bureaucracy under a federal insurance commissioner.
COFIR Executive Director Greg Wren said H. R. 6225 and the Senate version S. 2509 would dismantle a 135-year old system in place and operational in all 50 states. “While we acknowledge that insurance regulation should be streamlined, we believe establishing another federal office to do so is not the answer,” Wren said.
The two pieces of legislation now before Congress would create an optional federal charter to regulate the property and casualty, life insurance and health insurance industries, currently regulated by the states. “Taking power away from the states and centralizing it in Washington will only complicate issues for insurance companies, agents and brokers and, most important, consumers of insurance services,” Wren added.
Wren further stated that COFIR favors reform of existing state insurance regulation but believes empowering a federal regulator to oversee that reform is not a viable solution.
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