Federal insurance adviser floated

A bill would create a federal office inside the Treasury to provide expertise on regulating the insurance industry.
APR 17, 2008
By  Bloomberg
Rep. Paul E. Kanjorski, D-Pa., chairman of the House Financial Services Capital Markets, Insurance and Government Sponsored Enterprises Subcommittee, today introduced legislation that would create a federal Office of Insurance Information inside the Department of the Treasury. The bill, called the Insurance Information Act of 2008, would provide expertise on regulating the industry to Congress and the administration, he said. "Shortly after Sept. 11, it became very clear to me that the federal government lacks the expertise it needs on insurance policy. Our experiences after Hurricane Katrina and the ongoing problems in the bond insurance marketplace have only reinforced my views," Mr. Kanjorski said. "The Office of Insurance Information would provide an effective way to help Congress and the federal government make better decisions regarding national and international insurance policy." Yesterday at a hearing before the subcommittee, insurance industry representatives debated the merits and risks of the proposed optional federal charter for insurers. "The issue is not, as some might suggest, an issue of inadequate or excessive regulation," Rep. Spencer Bachus, R-Ala., ranking member of the Committee on Financial Services, wrote in his opening statement. "Rather it's the failure of Congress and the regulators to keep up with the rapid evolution of the financial services marketplace." The hearing, the third in a series, reviewed a number of proposals to address insurance regulatory reform. This new office would coordinate state insurance regulators' responses to policy issues and be a voice of insurance policy at the Treasury Department. While insurance is regulated at a state level, and will remain so, it is necessary to build knowledge of insurance policy in the federal government, Mr. Kanjorski said. The Treasury Department's recently released Blueprint for a Modernized Financial Regulatory Structure also recommends the creation of a similar office.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.