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Insurance commissioner voices support for merger of securities and insurance departments
Summary
Insurance Commissioner John Godfrey told the committee he supports Senate Bill 2214, which would merge the securities division with the Insurance Department; he cited administrative efficiencies and examples from other states but said the committee will need to consider the specifics.
Commissioner John Godfrey told the committee there is a bill pending in the Senate (Senate Bill 2214) proposing a merger of the securities department with the Insurance Department. Godfrey said the idea has surfaced in prior sessions and that the department supports renewed consideration of the concept because insurance and securities functions overlap in licensing, enforcement and consumer protection.
Godfrey cited other states — including South Dakota, which combined the functions in 2017 — as examples. He said combining the regulatory functions could reduce duplication in licensing and compliance, create shared administrative functions (licensing, monitoring), and improve coordinated enforcement of advisers who sell both insurance and investment products. Godfrey acknowledged past studies found limited appetite for mergers, but said modern regulatory challenges such as cybersecurity and cross‑industry products make a renewed look timely.
Committee members did not take action on the bill during the hearing; Godfrey said the departments will continue to treat the securities budget separately while the bill proceeds through the legislative process.
