NAIFA Releases Comments For FIO Role In Industry
A group representing the industry of insurance representatives and service professionals has issued comments on the Federal government’s Insurance Office (FIO) study concerning improvements and modernization of insurance standards and regulatory practices.
The NAIFA delivered a letter with comments to the Director of the FIO, concerning its view of the agency’s place in bettering transactions in the insurance and financial assistance industries nationwide.
The FIO was instated as a way help the government develop better practices for monitoring and regulating the financial industry as a result of worldwide economic turmoil that began in 2008. Despite the intended efforts to create an office that addresses potentially volatile financial issues, many are unhappy with the current progress in instating federal oversight of surety and financial security services products.
While the NAIFA was in support of the FIO’s creation, making the comment that the organization provides much needed expertise on financial and insurance products for the benefit of the Federal government, it did have several comments on how the FIO could best meet the goals it was intended for.
The NAIFA believes that the FIO should be primarily concerned with educating federal regulatory staff. These staff members include members of the SEC, DOL, and others. This education should give these departments a thorough working knowledge of issues within the insurance infrastructure, and its impact on other financial entities and areas. They further believe the FIO should act in the role of intermediary for regulation matters arising within the industry and local/federal regulators. Finally, they believe the FIO should be engaged in the review of surety regulations by states, and work with each to streamline their regulations and shed unnecessary or inconsistent language.
According to NAIFA’s Robert Miller (president of the group), it is vital that the federal government and its representatives grasp the impact of the industries over which they have control. He went on to say that, while his organization boasts nearly one hundred years of support and oversight in the regulation of insurance entities, there are many areas ripe for necessary development. He believes that the FIO can be a large part of the drive to provide reform and education in these industries.