You are here:HomeIssuesProtecting State Insurance Regulation 2010PIA, Coalition Opposes Sen. Leahy's McCarran Repeal Amendment

PIA, Coalition Opposes Sen. Leahy's McCarran Repeal Amendment

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...
May 18, 2010

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)