Connecticut's insurance commissioner told members of Congress Tuesday he has serious reservations about extending federal oversight of the insurance industry.
Thomas Leonardi, commissioner of Connecticut’s Insurance Department, was invited by a Republican member of the House Financial Services Committee to weigh in on new federal oversight of the insurance industry, which is largely regulated by the states.
At issue is the new Federal Insurance Office that was created by the Dodd-Frank financial reform bill and tasked to report on weaknesses in the insurance industry.
Leonardi, invited to testify at a Finance Committee hearing on insurance by Rep. Randy Neugebauer, R-Texas, said several FIO recommendations “give me serious pause.”
Leonardi said he’s opposed to allowing the FIO to participate in meetings between state regulators and insurers that involve “confidential, company-specific information.”
Leonardi also said he’s opposed to federal regulation of the troubled mortgage insurance industry.
“State regulators have the most experience and expertise to effectively regulate these insurers,” he said.
“A strong regulatory framework is already in place to monitor the activity of mortgage insurers, and efforts are under way to strengthen it.”
Leonardi also took the opportunity to give a shout out to Gov. Dannel Malloy “for his unfailing support for me and my department” and to Hartford.
“Hartford has been fondly called the Insurance Capital of the World for two centuries,” Leonardi said.