States, rather than the federal government, should continue to regulate the insurance industry in the US, argues Missouri Insurance Director
Missouri Insurance Director, John Huff has addressed more than 130 members of the Missouri Association of Insurance Agents (MAIA), making a strong argument that states, rather than the federal government, should continue to regulate the insurance industry – reported DIFP.
Larry Case, executive vice president, MAIA, said: “MAIA strongly opposes federal regulation of insurance, which is being advocated by some in Congress and the insurance industry. Huff agreed that states have successfully regulated insurance for more than 150 years, and that system should continue.”
Mr. Huff, director of Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP), said: “For a century and a half, states have been protecting consumers, ensuring fair competition and affordable products. The prospect of an optional federal charter will dilute consumer protections by allowing some companies to choose the weaker regulatory option.”
Mr. Case had asked Mr. Huff about the availability and affordability of earthquake insurance in Missouri, especially in the New Madrid Seismic Zone. The latter expressed that as there is some consumer confusion about this product and its availability, the department is currently surveying the 20 largest homeowners writers in Missouri to find out what earthquake coverage they offer, along with details of their products, such as rates and deductibles.