Lawmakers pushing for the creation of a federal insurance regulator say the country’s banking industry shows that a two-tiered system benefits consumers.
“That regulatory competition between state regulators and federal regulators has served consumers quite well,” Sen. John Sununu (R-N.H.) argued at a policy breakfast hosted by The Hill on Wednesday.
On Wednesday, the American Council of Life Insurers (ACLI), one of the most vocal advocates for the legislation and a sponsor of the breakfast, unveiled a study concluding that an optional federal charter would boost competition and innovation in the insurance industry. Earlier this year, the trade group released a study finding that a federal regulator would generate up to $5.7 billion in savings for the 284 life insurers analyzed.
Speaking at the breakfast, ACLI president and former Republican governor of Oklahoma Frank Keating argued that those savings would be passed on to consumers, reducing prices by “an average of 2 percent on each policy.”
Read more...Labels: Congress, Frank Keating
Posted at 10/25/2007 08:50:00 AM
