Federal regulators lose power to monitor insurance companies under new bill
H.R. 3437 — Insurance Data Protection Act · Filed by Scott Fitzgerald (R-WI) · 25 cosponsors · Introduced May 15, 2025 · Referred to committee
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What it does
This bill restricts federal financial regulators' ability to collect data directly from insurance companies by requiring them to first check if the data exists elsewhere, and it shields insurance companies from subpoenas by the Federal Insurance Office and Office of Financial Research. It also protects insurance company data from disclosure under Freedom of Information Act requests and preserves confidentiality privileges when insurers share data with regulators.
Why we flagged it
The bill's core function is to reduce federal regulatory access to insurance company data and limit enforcement tools (subpoena authority), while preserving confidentiality privileges. It is functionally a deregulatory measure that benefits the insurance sector by reducing transparency and oversight, despite being titled neutrally as a 'protection' act.
What the text implies
- By requiring regulators to exhaust other data sources before collecting from insurers, the bill creates procedural delays that may prevent timely detection of systemic financial risks or fraud, undermining the post-2008 financial stability framework.
- FOIA exemption for insurance company data submitted to federal regulators means the public cannot access information about insurer solvency, risk exposure, or regulatory concerns—information that directly affects consumer trust and market stability.
The full analysis lists 4 implications of this text.
Who stands to gain
insurance companies; large multistate insurers; nonbank financial companies with insurance operations