The American Financial Services Association (AFSA) has joined other trade groups in submitting a letter to Congress supporting the “Business of Insurance Regulatory Reform Act.” The proposed legislation seeks to amend the Consumer Financial Protection Act of 2010 and clarify the jurisdiction granted to the Consumer Financial Protection Bureau (CFPB) over the insurance industry.
Senate Banking Committee Chairman Tim Scott (R-SC) introduced the bill as part of ongoing efforts in Congress to reform aspects of the Dodd-Frank Act, with a focus on changes to the CFPB. The legislation emphasizes that state insurance regulators are best positioned to oversee insurers and protect consumer interests.
"AFSA agrees with Senator Scott that the state-based systems of insurance regulation have been incredibly effective in promoting consumer protection and we encourage further clarification of CFPB regulatory authority," according to AFSA. The association noted that Senator Scott has received support for this bill from many Republican colleagues, while many Democrats have opposed efforts to limit the CFPB’s powers.
With both chambers of Congress in August recess, AFSA stated it will continue monitoring this bill and other related legislative developments when lawmakers return.