PCI Encourages Congress to Defend McCarran-Ferguson Act

DES PLAINES, Ill., Feb. 16 -- The Property Casualty Insurers Association of America issued the following statement by Vice President Robert Woody on the house judiciary subcommittee on regulatory reform, commercial and antitrust law at the hearing entitled "H.R. 372 Competitive Health Insurance Reform Act of 2017":

Robert Woody, vice president for policy at the Property Casualty Insurers Association of America (PCI) today testified before the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law at the hearing entitled "H.R. 372 Competitive Health Insurance Reform Act of 2017." The following statement may be attributed to Woody.

"The McCarran-Ferguson Act is pro-competitive and repealing it will not solve any problems in the health insurance market," said Woody. "However, PCI is extremely concerned that McCarran has been misidentified as the source of the problems. And that misperception of how and why McCarran works could ultimately cause significant harm to the property casualty industry and our consumers, were the repeal ever expanded."

"The McCarran-Ferguson Act serves a pro-competitive and not an anti-competitive purpose, and this is especially true as it applies in the property casualty industry," continued Wood. "PCI commends the subcommittee's consideration of the anti-competitive impacts that proposals to repeal the antitrust provisions of McCarran could have on insurance markets and consumers generally, including in both the health and property casualty sectors.

"PCI appreciates the opportunity to engage in the discussion and defend the McCarran-Ferguson Act. PCI encourages the subcommittee to investigate the true causes of the problems in the health insurance market, and recognize that the McCarran-Ferguson Act is not one of those causes," concluded Woody.

PCI's written testimony is attached.

PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write $202 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 27 percent of the homeowners market, 33 percent of the commercial property and liability market and 34 percent of the private workers compensation market.

[Category: Insurance]

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