WASHINGTON, DC – Today, Congressman Scott Fitzgerald (WI-05) re-introduced the Insurance Data Protection Act. This legislation would crack down on the Treasury Department’s Federal Insurance Office (FIO) by repealing its subpoena authority and limiting how the office collects data from state insurance regulators.
“FIO’s recent push to collect insurance underwriting data under the guise of climate risk is just another example of unelected bureaucrats advancing a political agenda that has no place in insurance regulation,” said Congressman Scott Fitzgerald. “The Insurance Data Protection Act curbs this federal overreach by repealing FIO’s coercive subpoena powers and strengthening safeguards for consumer data—so Americans can be confident their personal information isn’t being misused.”
“The Insurance Data Protection Act would greatly enhance safeguards for consumer data and reaffirm state regulators’ authority to oversee the insurance industry,” said American Council of Life Insurers President and CEO David Chavern. “At the same time, it allows the FIO to fulfill its role in Washington as an advisor on insurance-related matters.”
“FIO was created as an information resource, not a regulator. Its subpoena authority was meant as a last resort when data wasn’t available from other sources – not to help push political agendas,” said NAMIC’s Senior Vice President – Federal & Political Affairs Jimi Grande. “NAMIC commends Rep. Fitzgerald for his leadership in reintroducing the Insurance Data Protection Act to rein in FIO and reinforce collaboration with functional state insurance regulators.”
“Since its creation, the Federal Insurance Office has repeatedly attempted to expand its authority beyond its original mandate, undermining the proven success of state-based insurance regulation,” said PIA CEO Mike Skiados. “The Insurance Data Protection Act offers meaningful reforms that reinforce the role of state insurance departments, which are best equipped to serve the unique insurance needs of their state. PIA commends Rep. Fitzgerald for his leadership in defending our state-based regulatory system.”
BACKGROUND: For about 150 years, state insurance regulators and laws have regulated insurance companies. The Federal Insurance Office (FIO), created under Dodd-Frank, grew increasingly aggressive under the Biden-Harris Administration in collecting data from insurance companies, most recently issuing a proposed data collection to assess “climate-related financial risk.” Despite working with state regulators on previous efforts, Biden’s FIO intentionally chose to not collaborate with state regulators on an overarching nationwide climate data call.
Although FIO has never issued a subpoena, as the office has accumulated power and become more aggressive in their encroachment of state regulators, the threat of a subpoena and other efforts to encroach on state-based insurance regulation should be eliminated.
SUPPORTERS: American Council of Life Insurers (ACLI), American Property & Casualty Insurance Association (APCIA), Independent Insurance Agents & Brokers of America (Big “I”), National Association of Mutual Insurance Companies (NAMIC), and National Association of Professional Insurance Agents (PIA).
Read the bill text here.
