State Regulators Look to Musk, Ramaswamy to Dismantle the Federal Insurance Office

Insurance regulators, pressing their case for the Federal Insurance Office to be abolished following Congress’ failed attempts to pull the plug, have called on Elon Musk and Vivek Ramaswamy, co-leaders of the newfangled Department of Government Efficiency (DOGE), for help…

The data that FIO seeks from carriers and regulators is already available through NAIC reports, state insurance department reports, trade and data organizations such as the Insurance Information Institute and Standard and Poor’s, according to Jerry Theodorou, director of the Washington, D.C.-based think tank R Street‘s finance, insurance and trade policy program.

FIO’s work to date has been lackluster, he added.

“There is only one mention of prior accident year reserve movement and no commentary on reserve adequacy or on potential solvency issues as the result of underpriced, under-reserved commercial auto business,” Theodorou said, adding that the under-reserved liability business is the leading cause of insurer insolvency.

“The fact that the FIO’s single comment on reserve movement is sourced to a journalist rather than its own research suggests that the FIO does not have sufficient insurance expertise to opine meaningfully on the financial strength of the industry,” he said.