H.R.3437 - Insurance Data Protection Act (119th Congress)
Summary
H.R.3437, the Insurance Data Protection Act, seeks to limit the authority of the Federal Insurance Office (FIO) and other financial regulators to collect data directly from insurance companies. The bill repeals the FIO's subpoena power and restricts the sharing of nonpublic data. It also requires financial regulators to coordinate with other agencies and publicly available sources before collecting data from insurance companies, prioritizing existing data sources.
Expected Effects
The likely effect of this bill is to reduce the regulatory burden on insurance companies by limiting direct data collection. This could lead to less regulatory oversight of the insurance industry. It also aims to protect the confidentiality of insurance company data.
Potential Benefits
- Reduces regulatory burden on insurance companies, potentially freeing up resources for investment and innovation.
- Protects the confidentiality of nonpublic data, safeguarding proprietary information.
- Streamlines data collection processes by encouraging coordination among regulatory agencies.
- May lead to more efficient use of government resources by prioritizing existing data sources.
- Could foster a more collaborative relationship between insurance companies and regulators.
Most Benefited Areas:
Potential Disadvantages
- May hinder the ability of the FIO and other regulators to effectively monitor the insurance industry and identify potential risks to financial stability.
- Could reduce transparency and make it more difficult to detect fraudulent activities or unfair practices.
- May limit the availability of data needed for informed policymaking and regulatory oversight.
- Could create information gaps that could be exploited by insurance companies.
- Potentially increases the risk of financial instability within the insurance sector.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on limiting federal regulatory power could be viewed as aligning with principles of federalism and limited government. However, the Constitution grants Congress the power to regulate commerce, which includes the insurance industry to some extent. The specific alignment depends on the interpretation of the Commerce Clause and the balance between federal and state regulatory authority. The bill does not appear to infringe on any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).