The call to eliminate the Federal Insurance Office (FIO) is gaining momentum, with major industry groups joining the effort. On April 11, the National Association of Mutual Insurance Companies (NAMIC) and the Independent Insurance Agents & Brokers of America (Big I) sent a letter to Congressman Troy Downing from Montana. Downing had introduced a bill earlier this year, known as H.R. 643, aimed at abolishing the FIO.
In their letter, NAMIC and Big I expressed long-standing concerns about the FIO’s role since it was established in 2010 as part of the Dodd-Frank Act. They argue that the office has duplicated efforts already being handled by state regulators and has created unnecessary pressure on the industry. The groups highlighted that the FIO’s actions have led to inconsistent expectations and additional costs for consumers.
The push to eliminate the FIO reflects broader industry sentiments. The National Association of Insurance Commissioners (NAIC) included the FIO’s elimination in its 2025 agenda. Furthermore, nine insurance commissioners recently urged the Department of Government Efficiency to review the FIO’s functions.
Critics of the FIO have described its performance as fluctuating between being ineffective and outright dishonest in its dealings with state regulators. The recent reports from the FIO have also faced backlash, with industry leaders claiming they lack factual accuracy and relevant data. A notable instance was a report on homeowners insurance, which the FIO touted as the most comprehensive data available. However, industry representatives disagreed, stating that it failed to capture the true state of insurance affordability and availability.
David A. Sampson, CEO of the American Property Casualty Insurers Association, pointed out that the FIO report provided an incomplete picture. Similarly, Jimi Grande from NAMIC criticized the report for not aligning with basic insurance principles.
The idea of abolishing the FIO is not new. In 2023, House Republicans had already introduced a bill to eliminate the office, indicating a growing discontent within the industry regarding federal oversight of insurance. As discussions continue, the future of the FIO remains uncertain, with industry stakeholders advocating for a return to state-based regulation.