NAMIC Submits Written Statement on McCarran-Ferguson to Judiciary Committee

On Wednesday, March 7, NAMIC submitted a written statement to the Senate Committee on the Judiciary that was holding a hearing titled "The McCarran-Ferguson Act and Antitrust Immunity: Good for Consumers?"

In the statement, NAMIC urged Congress to reject attempts to repeal the limited antitrust exemptions allowed for insurance companies as such action could reduce competition, increase insurance costs, and reduce availability for some high-risk coverages.

Opponents of the exemption have based their objections on unproven assertions that the antitrust exemption has led to collusion within the industry; however, there has been no evidence to support these allegations.

Oral testimony was provided by Sens. Trent Lott, R-Miss., and Mary Landrieu, D-La.; Michael Homan, New Orleans homeowner; Marc Racicot, president, American Insurance Association; and Susan Voss, insurance commissioner, National Association of Insurance Commissioners.

“It is highly likely that rather than increasing competition, repeal or limitation of the McCarran-Ferguson limited exemption would perversely reduce competition, increase insurance costs, and reduce availability for some high-risk coverages,” Carl Parks, NAMIC’s senior vice president of government affairs, said.

Direct questions to NAMIC’s Senior Director of Federal Affairs Marliss Browder.

Posted: Tuesday, March 13, 2007 12:00:00 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.