On July 23rd, AFSA joined with other trades and submitted a letter of support to Congress regarding the “Business of Insurance Regulatory Reform Act,” which would amend the Consumer Financial Protect Act of 2010 and clarify the jurisdiction granted to the CFPB over the insurance industry.
First introduced by Senate Banking Committee Chairman, Tim Scott (R-SC), this bill follows an ongoing legislative effort in Congress to reform the Dodd-Frank Act, and specifically the CFPB. It affirms that state insurance regulators are best positioned to oversee insurers and to safeguard the interests of consumers.
AFSA agrees with Senator Scott that the state-based systems of insurance regulation have been incredibly effective in promoting consumer protection and we encourage further clarification of CFPB regulatory authority. Senator Scott has received support for this bill from many of his Republican colleagues, but many Democrats have pushed back against attempts to limit the CFPB. With the House and Senate in August recess, we will closely monitor this bill and other relevant legislation when they are back in session.