NAIC calls for scrapping of FIO among 2025 federal priorities

By Mia MacGregor

March 24 - (The Insurer) – The National Association of Insurance Commissioners has outlined its 2025 federal legislative and regulatory priorities, including a push to eliminate the Federal Insurance Office.

The organization emphasized that ensuring the success of the U.S. state-based insurance regulatory system requires “constructive coordination with our federal peers and appropriate deference and independence of the regulatory system from federal intrusion.”

“For this reason, NAIC members call for the elimination of the U.S. Treasury Department’s Federal Insurance Office, as FIO stands in direct conflict with the states' role as primary regulators, complicates the states’ engagement with fellow insurance regulators globally, duplicates confidential data collection from the insurance industry, and blurs the line that separates Treasury from independent financial regulators,” the NAIC stated.

Another priority highlighted was ensuring natural catastrophe resilience. Through targeted funding, tax incentives and support for state mitigation programs, the NAIC stated that Congress can help protect communities by reducing the frequency and severity of losses and subsequent insurance claims.

Other priorities included promoting and preserving state flexibility in managing health insurance markets, securing consistent funding for programs such as Affordable Care Act subsidies, and providing guidance to states on federal regulations, including Section 1557 nondiscrimination rules, copay accumulator policies and mental health parity grants.

“These priorities aim to foster an innovative, competitive, and secure insurance marketplace, enhance access to insurance to safeguard the financial well-being of our citizens, and strengthen coordination between the federal government and the states,” the association said.

In December 2024, a multistate coalition led by New Hampshire’s insurance commissioner called for the abolition of the FIO, arguing that it is unnecessary and duplicates state regulators’ functions.