Beatty-Backed Insurance Regulation Bill Passes House

Beatty-Backed Insurance Regulation Bill Passes House

Congresswoman Beatty manages floor debate

WASHINGTON, DC – Yesterday, the State Insurance Regulation Preservation Act, H.R. 5059, unanimously passed the U.S. House of Representatives. The bipartisan bill, of which U.S. Congresswoman Joyce Beatty (OH-03) is lead Democratic cosponsor, seeks to improve federal regulation of the insurance industry. Specifically, the bill would require the Federal Reserve to tailor regulations for insurance company-owned financial institutions.

During formal consideration of H.R. 5059, Beatty led Congressional Democratic efforts, saying on the House floor, "This bill simply seeks to right-size regulation placed on insurance savings and loan holding companies compared to the risk they pose to financial stability."

In fact, during a Financial Services Committee hearing in March 2018, one expert witness explained that while their insurance company's banking assets made up only 0.2 percent of total assets, Federal Reserve regulations consumed 25 percent of the company's compliance costs. Since regulatory authority was transferred to the Federal Reserve in 2010, nearly two-thirds of existing insurance savings and loan holding companies have closed their banks.

H.R.5059 was introduced by Congressman Keith Rothfus (PA-15) and is awaiting further consideration by the U.S Senate.

###