NAIFAs Federal Charter Stance Will Mean More Lobbying Clout
The decision by the National Association of Insurance and Financial Advisors to support optional federal chartering of insurance companies and agents represents a major shift in the political landscape.
First, it significantly increases the lobbying impact of the life insurance industry. With NAIFA joining the American Council of Life Insurers in support of a federal option, the 2 largest trade associations in the life industry can present a united front to Capitol Hill.
The 2 groups now are united in believing that a federal option, not preemptive federal standards, must be a cornerstone of insurance regulatory reform.
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Second, NAIFAs policy shift means that within the agent community, 2 major associations now support OFC.
On the property-casualty side of the business, the Council of Insurance Agents and Brokers, which represents most of the largest insurance brokerage firms in the country, also backs OFC.
There is significant grassroots muscle behind the OFC effort now.
NAIFAs policy shift was no doubt difficult for an association that has long favored exclusive state regulation of insurance.
But as NAIFA CEO David Woods pointed out, it reflects the realities of both the marketplace and the political environment.
Agent licensing has become a major burden for producers who increasingly do business in multiple jurisdictions.