Financial regulatory reform legislation passed by the House of Representatives today includes a provision providing guidance to federal officials on international insurance standard-setting discussions and encourages greater collaboration and transparency with all stakeholders, according to the National Association of Mutual Insurance Companies.
“The outcomes of these international discussions have tremendous potential to harm consumers and competitive markets in the U.S.,” said Jimi Grande, senior vice president for government affairs at NAMIC. “Today’s vote will help bring needed transparency and an increasing reliance on the expertise of state insurance regulators in these discussions.”
The House voted to approve S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, which would ease regulatory burdens on community banks. Among its provisions is language originally authored by Sens. Dean Heller, R-Nev., and Jon Tester, D-Mont., that would bring more transparency to international negotiations regarding insurance capital standards.
Having already passed the Senate, today’s vote sends S. 2155 to President Trump’s desk for his signature. When the bill is signed into law, it will be the first legislation to address the international insurance standards process.
“S. 2155 will allow Congress to know whether new international standards are based on a systemically dangerous over-reliance on uniformity, recognize fundamentally different regulatory and legal systems, and adequately consider potential costs,” Grande said. “We are pleased with this critical first step of increased transparency, but Congress should also mandate any international standards be consistent with state and federal laws so they are not allowed to undermine state insurance regulation.
“Now that S. 2155 is complete, there should be no more obstacles for an additional financial regulatory reform package made up of bipartisan bills worked on and approved by the House Financial Services Committee,” Grande continued. “We will be working with committee Chairman Jeb Hensarling on including additional provisions in the package.”
Those provisions will come from H.R. 4537, a bill introduced by Reps. Sean Duffy, R-Wis., and Denny Heck, D-Wash.