State insurance commissioners, led by North Carolina’s Mike Causey, are advocating for the dissolution of the Federal Insurance Office (FIO), arguing that its functions are redundant and that insurance regulation should remain a state responsibility. Causey pointed out that the McCarran-Ferguson Act of 1945 effectively delegates insurance regulation to states, a system he believes has worked well for decades. North Dakota’s Jon Godfread echoed these views, stating that the FIO was created in response to the 2008 financial crisis but has since shown little necessity and only complicates regulatory oversight. They also emphasized the importance of maintaining state oversight while recognizing some areas where federal support can be beneficial, such as Medicare guidance and flood insurance programs.
