The Federal Insurance Office is nearing the end of a lengthy study of current and pending insurance regulations. The study, which was spawned from last year’s Dodd-Frank financial reform bill, will come to an end in January of 2012, at which time federal regulators will release the findings to the public. The results of the study has the insurance industry on the edge of its seat as the study may determine the fate of future regulations that could requires insurers to make vast changes to their business strategies and practices.
The FIO announced yesterday that the study will be opened to public commentary. The office is seeking comment on a variety of issues concerning consumers today, hoping to gauge the needs of the nation’s populace. Great emphasis is being put on how regulations differ from state to state, as such differences can often breed problems in the industry and help promote fraud. The cost of insurance is also an issue the office is seeking commentary on.
The Federal Insurance Office does not have the authority to impose new regulations whether their study deems them necessary or not. That power lies with the federal government and, by extent, state insurance regulators. In January, the FIO is likely to submit recommendations on what to do with current and future regulations, but regulators say that the report may be delayed for unknown reasons.
The office is accepting comment applications from now until December 16. Comments are being accepted through the federal regulations website.