WASHINGTON Rep. Sean Duffy, R-Wisc., introduced a bill Thursday that would require regulators to be more transparent as they negotiate global insurance standards.
The International Insurance Standards Transparency and Policyholder Protection Act mandates those involved in the negotiations to update Congress and gather input from the industry and state officials before agreeing to any new international standards for insurers. The insurance industry is largely regulated through state-based laws, though the Dodd-Frank Act granted some new oversight powers to the Federal Reserve and the Treasury Department.
"America's representatives should be able to negotiate freely with our global counterparts," said Duffy in a press release. "Unfortunately, they have little experience regulating the insurance industry, so we want to ensure the protection of the state based system of insurance, that has worked in the United States for a hundred years, remains."
Federal officials are also involved in talks at the international level to harmonize standards across different countries an effort that some critics warn could undermine the current regulatory system.
Sens. Jon Tester, D-Mont., and Dean Heller, R-Nev., introduced a similar bill earlier this week to that would require regulators to update Congress on negotiations and study the impacts of any potential policy changes on consumers.