NAMIC Applauds House Committee Bipartisan, Nearly Unanimous Passage of International Standards Bill

INDIANAPOLIS, Indiana, Dec. 14 -- The National Association of Mutual Insurance Companies issued the following news release:

The National Association of Mutual Insurance Companies today applauded the House Financial Services Committee for passing legislation to protect U.S. insurers and policyholders from internationally negotiated one-size-fits-all regulatory standards.

"Today's vote by the committee makes clear, in overwhelmingly bipartisan fashion, that U.S. state insurance markets will continue to be served by the regulatory system that has protected consumers for more than 150 years," said Jimi Grande, senior vice president of government affairs for NAMIC. "The state-based system in the U.S. has been the gold standard for protecting consumers, and we cannot allow that to be weakened solely for the sake of global regulatory uniformity."

Introduced by Housing and Insurance Subcommittee Chairman Sean Duffy, R-Wis., and Rep. Denny Heck, D-Wash., the International Insurance Standards Act of 2017, or HR 4537, passed by a 56-4 vote. The legislation would protect state insurance regulation by ensuring that any international agreements on insurance regulation do not impede the U.S. regulatory structure; that state regulators are an active part of any insurance-related trade negotiations; and that Congress has the power to disapprove any new international standard agreed to by federal agencies in trade negotiations.

"Many profess to believe in and defend the state-based system of insurance regulation but then push to advance policies that would seek to undermine it," Grande said. "This legislation makes clear that while the United States will have a seat at all international tables discussing insurance regulation, we will not ignore our functional state regulators nor cut our federal lawmakers out of the process. Too often we see foreign regulators attempt to alter our system of regulation for their own convenience without regard for American consumers. HR 4537 will bring an end to those efforts."

Taken as a whole, the United States represents the largest insurance market in the world. Individually, U.S. states make up more than half of the world's 50 largest insurance markets.

"We need to let the regulators negotiate regulatory standards. And while there's a role for the Federal Insurance Office in international negotiations, there must also be the accountability that comes with congressional oversight, Grande said. "HR 4537 will ensure that the U.S. speaks with a strong, unified voice in international negotiations, and we strongly urge the full House to pass this important legislation."