Federal Insurance Regulation

A top Treasury Department official commented on federal regulation of insurance at an NAIC meeting recently, according to National Underwriter (see here).  Key points:

• Most businesses would prefer not having to abide by 50-plus state standards
• Multi-state producer licensing has improved with reciprocity but a lack of uniformity of state regulation still remains
• Treasury has not taken a position on what approach, if any, should be taken to involve the federal government in the regulation of insurance

We can speak to the difficulties of multi-state licensing from experience, even with passage of the Grahm Leach Bliley Act and the introduction of reciprocity.  We can understand (although not quite agree) why some within the business have had enough and are actually advocating that state regulation be replaced by federal regulation.