U.S. Rep. Sean Duffy (R-WI) on Monday introduced bipartisan legislation to ensure that any future international agreements on insurance regulations reflect the successful United States model.
Duffy, in his role as chairman of the House Financial Services Subcommittee on Housing and Insurance, introduced the International Insurance Standards Act of 2017. The bill was unveiled as the United States negotiates global insurance standards with the International Association of Insurance Supervisors in Basel, Switzerland.
“I support America’s active participation in the world and believe that our representatives should advocate strongly on behalf of the U.S. insurance industry,” Duffy said in April when he released a discussion draft regarding the process for setting international insurance standards.
“Unfortunately, we have seen a rush to cut global insurance deals that lack clarity, reduce protections for policyholders, federalize our regulatory system, and leave Americans’ representatives in Congress with little oversight of the process,” he said.
The bill would also mandate that state insurance regulators are part of the U.S. team negotiating international agreements. Further, it would give Congress oversight of any new international insurance standards proposed by the U.S. government.
Duffy noted that insurance has been regulated by states for more than 150 years, and the system has the strongest regulatory framework in the world. The U.S. insurance regulation system combines wide-ranging policyholder protections, including consumer protection, solvency protection and market-conduct protection.
“Our state-based system of insurance regulation has worked well for more than 150 years and should be held up as a model to be supported by our negotiators in international forums,” Duffy said.
Duffy was joined by U.S. Rep. Denny Heck (D-WA) in introducing the bipartisan measure.