Multi-State Coalition Led by New Hampshire Insurance Commissioner Calls for Abolishment of Federal Insurance Office

CONCORD, NH (December 20, 2024) – A coalition of Insurance Commissioners from Alabama, Arkansas, Kansas, Louisiana, New Hampshire, North Carolina, Oklahoma, Tennessee, and West Virginia have issued a joint letter to the newly appointed leaders of the Department of Government Efficiency (DOGE), Elon Musk and Vivek Ramaswamy. The letter urges DOGE to recommend the elimination of the Federal Insurance Office (FIO) as part of its mission to streamline federal operations and reduce inefficiencies.

Established under the Dodd-Frank Act, the FIO was tasked with monitoring the insurance industry, assessing systemic risk, and advancing global regulatory practices. However, the Commissioners argue that the FIO duplicates functions already performed effectively by state regulators and the National Association of Insurance Commissioners (NAIC), which has coordinated state-based regulatory efforts since 1871.

“State-based insurance regulation has successfully ensured consumer protection, market stability, and efficiency for decades,” said New Hampshire Insurance Commissioner DJ Bettencourt. “The Federal Insurance Office has consistently failed to demonstrate its necessity, and its continued operation represents an unnecessary burden on taxpayers.”

The letter highlights recent concerns with FIO’s attempts to collect weather-related data independently, potentially compromising data accuracy and transparency. Despite efforts by the NAIC to collaborate through a data-sharing agreement, FIO has opted to use incomplete information, risking consumer harm and undermining regulatory efforts.

The Commissioners also urge DOGE to collaborate with newly elected Congressman Troy Downing of Montana’s Second Congressional District. As the former Montana Commissioner of Securities and Insurance, Congressman Downing has extensive knowledge of the FIO’s significant shortcomings and can provide valuable insights to support this initiative.

The coalition’s efforts underscore a shared commitment to preserving the effectiveness of state-based regulation while safeguarding consumers and ensuring fiscal responsibility.

Read the letter: https://www.insurance.nh.gov/sites/g/files/ehbemt861/files/inline-documents/sonh/doge-letter-20241220.pdf

The New Hampshire Insurance Department Can Help
The New Hampshire Insurance Department’s mission is to promote and protect the public good by ensuring the existence of a safe and competitive insurance marketplace through the development and enforcement of the insurance laws of the State of New Hampshire. Contact us with any questions or concerns you may have regarding your insurance coverage at 1‐800‐ 852‐3416 or (603) 271‐2261, or by email at consumerservices@ins.nh.gov. For more information, visit https://insurance.nh.gov.