The National Association of Professional Insurance Agents (PIA) is calling on Congress to strip the Obama administration of its authority to make recommendations to Congress regarding future oversight of the insurance industry.

But another insurance association said it would oppose such an initiative by Congress and called PIA “out of touch.”

PIA contended in its statement that since any study and subsequent recommendations would be conducted by “federal bureaucrats,” the results are preordained.

Instead, PIA said in its statement that such a study should be conducted by a “nonpartisan entity,” such as the Government Accountability Office.

Under the Dodd-Frank financial services reform law, the Federal Insurance Office (FIO) is to conduct a study on insurance regulation and make recommendations.

But Fred Thomas, PIA president, said that it “is critical that this office not be permitted to conduct studies and make policy recommendations to Congress because it is clearly biased and will recommend that a vast new federal insurance bureaucracy be created. Congress needs to nip this in the bud right now.”

Blain Reithmeier, a spokesman for the American Insurance Association (AIA), disagreed with PIA's statement.

“Any suggestion to defund this essential study is out of touch with the challenges facing the industry,” said Mr. Rethmeier, AIA senior vice president of public affairs.

Read the complete PropertyCasualty360.com story, “Two Insurance Groups Disagree Over Intent, Scope Of Upcoming FIO Report.”

The National Association of Professional Insurance Agents (PIA) is calling on Congress to strip the Obama administration of its authority to make recommendations to Congress regarding future oversight of the insurance industry.

But another insurance association said it would oppose such an initiative by Congress and called PIA “out of touch.”

PIA contended in its statement that since any study and subsequent recommendations would be conducted by “federal bureaucrats,” the results are preordained.

Instead, PIA said in its statement that such a study should be conducted by a “nonpartisan entity,” such as the Government Accountability Office.

Under the Dodd-Frank financial services reform law, the Federal Insurance Office (FIO) is to conduct a study on insurance regulation and make recommendations.

But Fred Thomas, PIA president, said that it “is critical that this office not be permitted to conduct studies and make policy recommendations to Congress because it is clearly biased and will recommend that a vast new federal insurance bureaucracy be created. Congress needs to nip this in the bud right now.”

Blain Reithmeier, a spokesman for the American Insurance Association (AIA), disagreed with PIA's statement.

“Any suggestion to defund this essential study is out of touch with the challenges facing the industry,” said Mr. Rethmeier, AIA senior vice president of public affairs.

Read the complete PropertyCasualty360.com story, “Two Insurance Groups Disagree Over Intent, Scope Of Upcoming FIO Report.”