US House committee proposes bill limiting CFPB's remit on insurance

By Navneeta Nandan Sept 18 (The Insurer) — The US House Financial Services Committee proposed a bill on Wednesday, limiting the authority of the Consumer Financial Protection Bureau over state insurance regulation, with National Association of Mutual Insurance Companies supporting the provision. The CFPB was established through the 2010 Dodd-Frank Act to ensure greater oversight of financial markets after the 2008 financial crisis. As per the law, insurance regulation is explicitly excluded from CFPB's jurisdiction. However, NAMIC said that the bureau has "blurred the lines of its boundaries", such as issuing advisory on homeowners insurance in 2023. Overreach in Washington creates an uncertain environment that ultimately raises costs, the association added. “State regulators have been serving insurance consumers for more than 150 years with a deeper understanding of the risks facing their state, and the needs of consumers,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “Protecting this system from federal overreach is paramount to a competitive marketplace that best serves consumers.” The bill approved on Wednesday limits the bureau and clearl