The American Council of Life Insurance is scheduled to release the results of a yearlong study Wednesday that could be the first salvo in the fight for a federal insurance regulator.
Though the group will dodge making any official policy recommendations, sources said the study shows federal regulation of insurance would be significantly less expensive than the current system of state oversight. Savings could be as high as 25%, banking industry officials familiar with the study said.
An ACLI spokesman warned that the report's results are preliminary and mixed. An examination of administrative, compliance, premium, and other costs finds federal regulation would lower some costs and raise others, he said. Nevertheless, "what you learn from this is there are some good reasons to take a hard look at federal regulation as a viable alternative to the status quo," the spokesman said.