Namic and Big I back Montana congressman’s bill to scrap FIO

By Chris Munro

April 14 - (The Insurer) - The National Association of Mutual Insurance Companies (Namic) and Independent Insurance Agents & Brokers of America (Big I) are the latest industry bodies to add their names to the growing group of organizations supporting efforts to scrap the Federal Insurance Office (FIO).

In January, Montana Congressman Troy Downing introduced H.R. 643, the “Federal Insurance Office Elimination Act,” in a move designed to scrap the U.S. Treasury’s FIO and return insurance industry regulatory oversight back to the states.

Namic and the Big I have now jointly given their support to Downing’s bill.

In a letter sent to Downing last Friday, Jimi Grande, senior vice president, federal and political affairs at Namic, and Nathan Riedel, senior vice president, federal government affairs at the Big I, thanked the congressman for introducing his bill.

“Due to your extensive industry experience, particularly as a former Montana Commissioner of Securities and Insurance, you uniquely understand the effectiveness and importance of the state-based system of insurance regulation as well as the confusion FIO can create,” Grande and Riedel said.

“We were pleased to see current insurance regulators recently follow your lead in calling for the elimination of the office, which they note “stands in direct conflict with the states’ role as primary regulators,” they added.

Namic and Big I join both the National Association of Insurance Commissioners (NAIC) and a separate group of nine insurance commissioners who have called for an end to the FIO.

As previously reported, in March the NAIC outlined its 2025 federal legislative and regulatory priorities, one of which was to push for the FIO’s elimination.

That followed a multistate coalition led by New Hampshire’s insurance commissioner, which in December last year called for the FIO’s abolition, with the group arguing the Treasury-run overseer is unnecessary and duplicates state regulators’ functions.

In the Namic and Big I letter, Grande and Riedel said ever since the FIO was formed in 2010, their associations have echoed concerns from functional regulators over the regulator’s potential for what they described as “duplicative and overreaching workstreams."

Grande and Riedel said those concerns have “unfortunately” been validated over the course of the FIO’s existence.

The FIO, Grande and Riedel said, “has undermined state-based regulation and exerted inappropriate pressure on industry participants, including unwarranted threats of subpoenas."

Those actions cross with work already that is being undertaken by regulators in each state, thereby creating inconsistent expectations, duplication and costs that are ultimately borne by consumers, Grande and Riedel said.

“Regrettably, over the years, the confusion and concern voiced by industry, bipartisan members of Congress, and the National Association of Insurance Commissioners has largely been dismissed, with many FIO reports and positions failing to include factual and data-driven contributions and perspectives,” the Namic and Big I representatives said in their letter.

While supporting efforts for the FIO to be scrapped, Grande and Riedel acknowledged the important role that the U.S. Treasury plays in other aspects of the insurance industry.

“We acknowledge the importance and value of the Treasury Department’s administration of the Terrorism Risk Insurance Program and its involvement in international insurance matters as a strong voice on behalf of U.S. insurance markets and regulatory framework,” they wrote.

However, Grande and Riedel added that, before the FIO’s creation, the Treasury “ably fulfilled these responsibilities and can do so again in its absence."

“We thank you for your leadership on this critically important issue," Grande and Riedel said.

“We stand ready to work with you to advance this legislation, recognizing that the time-tested state-based regulatory system, which has been in place for over 150 years, continues to best serve our customers and their communities,” they added.