Southern Wisconsin Times

WASHINGTON, DC – On September 7, Congressman Bryan Steil (WI-01) questioned the Consumer Financial Protection Bureau (CFPB) Director, Rohit Chopra, in a letter regarding the new consumer advisory the Bureau issued on August 30, 2023. The advisory focuses on home insurance cancellation or cost increases, an issue outside of the Bureau’s authority.

The letter reads:

I am writing to you regarding the consumer advisory the CFPB issued on August 30, 2023 titled “Take action when home insurance is cancelled or costs surge.” As the advisory’s title suggests, this document warns consumers about potential issues that can arise due to disruptions or changes in their local property insurance markets that impact their home insurance policies. Despite the importance of this issue, I am concerned that the CFPB would issue an advisory on a topic outside its regulatory authority.

As you are aware, the Dodd-Frank Act (P.L. 111-203), from which the CFPB derives its authority, explicitly excludes the business of insurance from the CFPB’s jurisdiction. 12 U.S.C. 5517(f) clearly states that “the Bureau shall have no authority to exercise any power to enforce this title with respect to a person regulated by a State insurance regulator.” Further, the state-based system of insurance regulation has protected policyholders and safeguarded insurer solvency for over 150 years, even in the face of extreme weather events and other catastrophes.

In response to my questions at Financial Services Committee hearings on October 27, 2021, and June 14, 2023, you reaffirmed your view that the statute does, in fact, restrict the CFPB’s authority with respect to the business of insurance.

With that in mind, I would like to pose a series of questions. 

1. Have you changed your view that the CFPB does not possess authority over the business of insurance? 
2. Do you have confidence in state insurance commissioners to protect policyholders and ensure solvency? 
3. On what basis did the CFPB make the decision to issue the August 30, 2023, consumer advisory on an industry outside the CFPB’s authority? 
4. Does the CFPB intend to issue additional advisories or make any policy announcements related to the business of insurance?

For a copy of the letter, click here.

Background: 

Steil is a member of the House Financial Services Committee. Steil has previously questioned Director Chopra in front of the Financial Services Committee about the CFPB’s lack of authority to regulate the business of insurance.  

Original source can be found here.