Agents Slam Federal Insurance Regulation

NU Online News Service, Oct. 1, 4 :20p.m. EDT?The National Association of ProfessionalInsurance Agents said a survey showed that its members stronglysupport state regulation of insurance and oppose any effort to moveto a federal regulatory system.[@@]

Len Brevik, executive vice president and chief executive officerof PIA National, released the findings during an industry panelheld in Hershey, Pennsylvania.

"The results of our survey affirm that our members remain firmlysupportive of the current system of functional state insuranceregulation," said Mr. Brevik. "Participants were vehement in theirrejection of a federal insurance regulator. At the same time, amajority agreed that changes are needed to modernize stateinsurance regulation."

Of the approximate 400 PIA members responding to the e-mailsurvey, 96 percent said they were satisfied with their own state'sregulation and oversight practices; however only 41percentexpressed the same satisfaction with regulation and oversight innon-resident states where they transact business.

The survey was conducted Sept. 23 to 29. Percentages wererounded off.

A majority of respondents, 55 percent said changes are needed tomodernize state insurance regulation, while 44 percent said theythought everything is fine the way it is.

Eighty-four percent, said that having a federal insuranceregulator is a bad idea, and 88 percent expressed support forcontinuing the current system of functional state-based insuranceregulation "with only the most minimal federal oversight."

Regarding the proposed creation of a federal-level regulatorypanel to coordinate, but not mandate, greater efficiency in theinsurance marketplace as envisioned in draft legislation currentlypending in Congress, 39 percent said the panel is a bad idea and 16percent supported it. A majority, 51 percent, said such a panel isa "Trojan Horse" for federal regulation of insurance.

By a margin of 82 percent to 9 percent, respondents agreed withthe statement, "Federal regulation of insurance is only favored bya handful of large carriers and banks as a means of increasingtheir market share."