Rep. Troy Downing urges elimination of Federal Insurance Office, proposes Treasury appointee for international role

Representative Troy Downing told the House Financial Services Committee on Member Day that he has introduced legislation to eliminate the Federal Insurance Office and return primary insurance regulation to the states.

Downing said the McCarran‑Ferguson Act of 1945 makes “very clear that states have the sole regulatory authority over the insurance industry” and called FIO, created under the Dodd‑Frank Act of 2010, an unnecessary federal intrusion. “The 2010 Dodd Frank Act dumped into decades of this practice by creating the federal insurance office to monitor all aspects of insurance,” he said.

Why it matters: FIO sits on the Financial Stability Oversight Council and represents the United States in international insurance fora; removing it would change how the federal government coordinates on insurance regulation and international engagement.

Downing described his bill, cited in testimony as H.R. 643, the Federal Insurance Office Elimination Act, and said it would return regulatory authority to states while preserving narrow federal functions. “Let me be clear. I did not come to Washington to slash and burn. I came to Washington to advocate for targeted regulatory reforms,” he said, and added that any international representation should continue.

Asked by the committee chair how international representation would be handled if FIO were eliminated, Downing recommended a narrowly tailored solution: “On the very narrow part of that where they are dealing with... international issues, I believe that that could be an appointee under Treasury. I think that could be a person that handled that part and that would solve... the problem with the life companies that do have international exposure.”

Downing also criticized what he described as past FIO actions issuing broad data calls to domestic insurers on climate matters and said the office had not sufficiently consulted state regulators. He told the committee he did not believe FIO should have subpoena power and said the National Association of Insurance Commissioners had seen its priorities misrepresented.

No formal vote or committee action occurred during the member‑day hearing. Downing’s remarks were part of witness testimony and subsequent member questioning; he said he looks forward to working with the committee and insurance stakeholders to advance the legislation.