Trump’s Election Could End DOL Rule, ‘Junk Fee’ Crackdown, But Also Spark Inflation

Jerry Theodorou, policy director of finance, insurance, and trade at center-right think tank the R Street Institute, said that given the fact that the rule’s implementation was already suspended, he doesn’t see much future for it under a Republican establishment.

“Republicans, being regulation light, I don’t think they will focus on the DOL rule,” said Theodorou in an interview. “I don’t think it will become stricter…”

With Republicans holding the majority of the Senate, they will appoint the new leader for the committee, and Theodorou said that he has a guess as to who it might be. “Who’s going to be the chairman? Mike Rounds, I put my money on Mike Rounds,” said Theodorou, referring to committee member Sen. Rounds, R-S.D., a former partner in Fischer Rounds & Associates, an insurance and real estate firm.

Another change to the committee resulting from the election, Theodorou noted, is that committee member and Vice-President-elect Sen. J.D. Vance, R-Ohio, will be leaving his seat after the inauguration…

New insurance commissioners were elected in Washington and North Carolina. Patty Kuderer, a Democrat, was chosen as Washington commissioner, filling a seat that is being vacated by Mike Kreidler, also a Democrat. In North Carolina, incumbent Republican insurance commissioner Mike Causey was reelected, defeating his Democratic challenger.

Theodorou said that Washington’s Kuderer has indicated she might ramp up oversight in the state, having pledged to hold insurance companies accountable…

If Trump’s policies drive up inflation — which has been dropping since its peak in July 2022 — Theodorou said it could take a toll on life insurers and their capital reserves. These funds, which are set aside to cover liabilities, could erode in relative value over the years with persistent inflation.

“That means that life insurers will have less capital, once the value of the dollar set aside in reserves will become less,” said Theodorou. “Inflation is something to worry about.”