PIA is supporting an effort by a broad coalition of property-casualty insurance interests to oppose the latest effort to repeal McCarran-Ferguson. PIA has signed a letter in opposition to SA 3823, an amendment to financial reform legislation offered by Sen. Patrick Leahy (D-Vt.), chairman of the Judiciary Committee, to repeal the limited anti-trust exemption for health insurers.

The letter states that while “the amendment targets health insurers, its flawed language and lack of definitions are a bad precedent for repealing the anti-trust exemption for any line of insurance whether it is health, life or property-casualty.” It also points out that McCarran-Ferguson creates a limited exemption from federal anti-trust law only to the extent that the business of insurance is regulated by the states; it does not grant insurers blanket immunity from federal anti-trust laws.

In a separate letter, the National Conference of Insurance Legislators (NCOIL) states that “repealing the limited antitrust exemption would ultimately drive smaller insurers—who depend upon sharing of loss history and other information—from the market.  This would discourage competition, as the exemption ensures that smaller and more regional insurers can compete with large insurers that are less dependent on industry-wide data. Repealing the exemption would raise insurance costs, rather than lower them [and] insurance costs for consumers would undoubtedly rise.”

Insurers Call for Healthcare Antitrust Protection (National Underwriter 5/14/10)

Joint P/C Letter Defending McCarran (5/13/10)

NCOIL Letter Defending McCarran (5/14/10)

May 18, 2010