IRI Provides Testimony on FIO Insurance Regulation Modernization Report
By Cathy Weatherford
Insured Retirement Institute (IRI)
WASHINGTON, D.C. – The Insured Retirement Institute (IRI) today provided testimony to a congressional subcommittee, offering its support for several recommendations focused on increasing the uniformity and effectiveness of insurance regulation. These recommendations were contained within the Federal Insurance Office’s (FIO) recently issued report on insurance regulation modernization.
“IRI strongly supports many of the recommendations set forth in the FIO report regarding marketplace oversight, consumer protection and access to insurance, including the recommendations related to market conduct reform,” wrote IRI President and CEO Cathy Weatherford, in testimony submitted to the U.S. House Financial Services Subcommittee on Housing and Insurance. “These reforms, if enacted, will lead to more efficient and effective regulation, ultimately reducing costs for insurance providers and Americans who rely on insured retirement strategies.”
Among recommendations included in the December 2013 report, the FIO embraced several that were proposed by IRI in 2011. These recommendations include market conduct examination reforms – specifically the “lead state” concept and coordination among the states – as well as the creation of a national insurance licensing clearinghouse via the National Association of Registered Agents and Brokers Reform Act (NARAB II).
IRI also expressed support for several other recommendations in the FIO report, including the uniform adoption and implementation across the states of the National Association of Insurance Commissioners’ current “Suitability in Annuity Transactions Model Regulation” and the “Interstate Insurance Product Regulation Compact Model Law.”
The IRI testimony also stated the need for federal and state regulators to combat “the retirement income crisis” by providing consumers with more education regarding the risk of outliving their assets and the financial strategies that can help manage this risk through guaranteed lifetime income.
“More needs to be done to encourage all Americans to protect against the longevity risk they face… and the potential human and economic impact resulting from the failure to do so,” Weatherford wrote.
Click here to view the testimony.
Click here to view research findings from IRI’s regulatory environment study.