As he continues the push for the federal regulation of insurance, Pennsylvania Rep. Paul E. Kanjorski, a Democrat, has reintroduced what he is calling a “minimum step” for more oversight of the industry.

Kanjorski, the chairman of the House Financial Services Capital Markets, Insurance and Government Sponsored Enterprises Subcommittee, announced May 22 that he has introduced HR 2609, calling for a National Insurance Office.

He introduced a similar bill in April 2008, but it died from inaction in last year’s Congress. The new bill mirrors the one last year, calling for a federal Office of Insurance Information within the U.S. Treasury Department, providing advice and expertise on insurance regulation to the Obama Administration and members of Congress.

More specifically, the Office of Insurance Information would collect and analyze data on insurance; report to Congress every two years; establish federal policy on international insurance matters; and ensure that state insurance laws remain consistent with federal policy in coordinating international trade agreements, according to the resolution.

The insurance office bill is one of several being considered by Congress, as legislators seek greater control over the industry.

Paul Kanjorski

“If anyone had any doubts about the importance of insurance to the American economy, the spectacular collapse of many sectors of the industry and their requests for federal support should have dispelled them,” Kanjorski said in a statement. “While most other pieces of the national economy have some sort of knowledge center within the federal government, insurance currently stands without a central office.”

Kanjorski said the office “would help Congress and the federal government make better decisions regarding national and international insurance policy, as such knowledge of the industry does not exist at this time.”

“Additionally, as I currently work to examine what role the federal government should ultimately have in overseeing insurance, this legislation provides a minimum step to ensure that insurance is not at a disadvantage as compared to other financial products,” he added.

The American Council of Life Insurers praised Kanjorski’s action, saying it welcomed ongoing dialogue on the need for insurance regulatory reform.

ACLI President and CEO Frank Keating said life insurance is a $5 trillion industry, affecting the lives of more than 75 million American families and thus needs better oversight.

“Reform of financial services regulation in the U.S. will be incomplete if the life insurance industry is ignored,” Keating said in a statement.

He added that the group supports the creation of an optional federal charter for the insurance regulation, proposed in HR 1880, the National Insurance Consumer Protection Act.

“This legislation would establish an Office of National Insurance to directly regulate life insurers that become federally-chartered,” Keating said. “The ONI would be able to interact with peer regulators of banks and investment firms to give the federal government a comprehensive viewpoint on the financial markets.”

Kanjorski’s legislation, co-sponsored by six members of the House Financial Services Committee, would also establish an advisory group to help inform and advise the head of the insurance information office. Those represented in this group would include state regulators, consumer groups and other parties in the insurance industry, he said.