House committee reviews insurance regulatory standards

The U.S. Subcommittee on Housing and Insurance under the U.S. House Financial Services Committee held a hearing titled “The Impact of Domestic Regulatory Standards on the U.S. Insurance Market.” The purpose of this hearing was to address the effects of international insurance standards on the domestic markets, coordination of state and federal regulation and accessibility issues for individuals.

The single panel of witnesses included:

• Michael McRaith, director, Federal Insurance Office (FIO), U.S. Department of the Treasury
• Tom Sullivan, senior adviser, Department of Banking Supervision and Regulation, Federal Reserve Board of Governors
• John Huff, director, Missouri Department of Insurance, Financial Institutions & Professional Registration, representing the National Association of Insurance Commissioners
• The Hon. S. Roy Woodall Jr., independent member, Financial Stability Oversight Council, U.S. Department of the Treasury.

One of the recurring questions throughout the hearing was the issue of insurance affordability, particularly for low-income communities. Rep. Gwen Moore, D-Wis., raised a point about the automotive industry, asking McRaith why the FIO has historically focused its attention on auto insurance. McRaith explained the FIO’s responsibility to monitor affordability and access to automotive insurance, citing several studies that tie automobile ownership to greater economic opportunity. He said that cost drivers can vary from state to state, which is why state regulators are often in a better position to use state-specific regulatory tools.

Rep. Blaine Leutkemeyer, R-Mo., subcommittee chairman, said, “Our nation enjoys the most robust, policyholder-centric insurance system in the world … It is essential that changes made to the regulatory landscape be done appropriately and in response to issues that pose risk to policyholders.”

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate state and chapter groups from both the mechanical and collision repair segments of the automotive service industry.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. To take advantage of the many benefits of membership in ASA, please visit www.ASAshop.org or call (817) 514-2900. For additional information about ASA, including past media releases, go to www.ASAshop.org or visit ASA’s legislative website at www.TakingTheHill.com.