InsuranceHeadlines.com reported that the President of the Insurance Information Institute (I.I.I.) testified before the House Financial Services Subcommittee in Insurance, Housing and Community Opportunity (there’s a committee title for you) on July 24, 2012.

His objective was to educate Representatives about the differences between the insurance and banking industries and how possible regulation from the Dodd-Frank act could harm the industry.

“Although DFA provides insurers with an exemption from the Volcker Rule, there is concern that financial institutions whose primary business is insurance but who have an affiliation with a bank could be adversely impacted by the Rule.” said Hartwig.

His most compelling argument might be the following:  Prior to the passage of Dodd-Frank in 2010, the insurance industry suffered the two biggest losses in its history (9/11 and Hurricane Katrina) and withstood the worst financial crisis since the great depression.  Not one insurance company failed in that time, while more than 400 banks did.

He presents a convincing argument that the regulations in place for the insurance industry are working.