SANTA MONICA, CA, Feb. 2, 2017 -- IIABA Chairman Spencer Houldin told IIABCal members at this week's Winter Conference in Santa Monica that the November election results will have a significant impact on independent agents and brokers and increases the need for political grassroots efforts.

 

During his keynote address, Houldin said the Trump Administration will make the repeal and replacement of the Affordable Care Act and tax reform top priorities.

"Republican control of the executive and legislative branches is likely to yield a better environment for businesses, including insurance agencies," Houldin told the Winter Conference audience. "And Republicans now have oversight of the Federal Insurance Office (FIO) for the first time since the office was created."

As it pertains to flood insurance, Houldin said, many Republicans have advocated for a significant increase in private market involvement.  He said re-authorization of the National Flood Insurance Program (NFIP) is set to expired on Sept. 30, 2017.

"Last summer, the Big “I” was the only agent group to have a witness at the first in a series of two House hearings focused on the NFIP and possible reforms," he said. 

Houldin said the Big “I” supports a long-term NFIP reauthorization with modernizations and believes that considerations should be part of the final legislation including: Updated mapping to gain solid data, Usage of private reinsurance, Mitigation initiatives and incentives, Actuarially sound rating, Long term authorization, Advocating the roll of the agent, Justification of our compensation, and Private market to complement the NFIP.

 

As for the Financial CHOICE Act, Houldin said President Trump has stated his intention to repeal all or part of the Dodd-Frank Act or otherwise reform financial services regulation, and Congressman Jeb Hensarling (R-TX) has introduced the CHOICE Act.

"The insurance provisions in the Act seek to combine the FIO and the Financial Stability Oversight Council (FSOC) insurance expert to create the Office of the Independent Insurance Advocate (IIA)," he said. "Additionally, there is an increasing call from some in the marketplace, now including the NAIC, to eliminate FIO."

Houldin said it as a critical year for all independent agents and brokers to attend the Big “I” Legislative Conference, May 3-5, 2017, in Washington D.C.  For more information, click here.