WASHINGTON BUREAU — For state regulators and legislators, the new Federal Insurance Office (FIO) is certainly “at least a new cousin in the federal government,” according to Neil Alldredge.
Alldredge, a senior vice president at the National Association of Mutual Insurance Companies, Indianapolis, made that remark here this weekend at the spring meeting of the National Conference of Insurance Legislators (NCOIL), Troy, N.Y.
The Dodd-Frank Wall Street Reform and Consumer Protect Act created the FIO to help the U.S. Treasury Department keep tabs on the insurance industry and negotiate insurance trade agreements with other countries.
The Obama administration is supposed to hire an FIO director soon, and the FIO director is supposed to be a member of the Financial Stability Oversight Council (FSOC), an agency that is supposed to help all federal financial services regulators monitor events and trends that could affect the stability of the U.S. financial system. The FSOC is supposed to have an Office of Financial Research (OFR) to help it monitor financial services trends.
Dodd-Frank Act drafters limited that the authority of the FIO would be limited, but Dodd-Frank
“will impact state insurance regulation,” Alldredge said.