AIA Issues Statement on House Financial Services Committee CHOICE Act Hearing

WASHINGTON, April 27 -- The American Insurance Association issued the following news release:

Wes McClelland, vice president for federal affairs for the American Insurance Association (AIA), issued the following statement in advance of today's House Financial Services Committee hearing, entitled A Legislative Proposal to Create Hope and Opportunity for Investors, Consumers, and Entrepreneurs. The hearing will discuss the latest discussion draft of the "Financial CHOICE Act of 2017."

Mr. McClelland's statement follows:

"Nearly seven years have passed since the enactment of the Dodd-Frank Act and AIA welcomes a review and update of the law. The CHOICE Act appropriately recognizes that the business of insurance is different from banking and that insurers are inherently not systemically risky. Therefore, AIA applauds the discussion draft's emphasis on the need for greater clarity and transparency involving the designation process for systemically important financial institutions (SIFIs) by the Financial Stability Oversight Council (FSOC).

In addition, AIA also looks forward to working with the Committee in reforming the Federal Insurance Office (FIO) and the FSOC independent insurance expert position. Both FIO and the FSOC independent insurance expert have been important advocates for the insurance industry given their narrow authorities. And because U.S. insurers and reinsurers compete in global insurance markets, we believe there should continue to be a federal office that has the ability to represent the best interests of U.S. insurers abroad, serve as a resource for information on U.S. insurance markets, and advise other federal entities on insurance matters, in close coordination with our state insurance regulators."

Celebrating its 150th year in 2016, The American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 320 insurers that write more than $125 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage, specialty, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.