Michael McRaith, Director of the FIO (Federal Insurance Office), appeared before the House Financial Services Committee to discuss the role of the new office that was created by the Dodd-Frank bill.  He made it clear that the FIO is not a new Federal regulation board.  He cited parts of the Dodd-Frank bill that are explicit in wording that restrict its power.  Insurance regulation will still be in the hands of the states.
He further went on to explain that any information desired by the FIO must first be requested of the state regulators first.  This is important because if the FIO were to go directly to the insurance companies it would cause an additional layer of bureaucracy and create the need for additional personnel to address the FIO’s needs.

The National Association of Mutual Insurance Companies was pleased with the testimony.  “Director McRaith's testimony shows that he has an understanding of the role the Federal Insurance Office was created to fill — that of an 'objective, reliable resource for information' on the insurance industry while the state insurance departments remain the functional regulators over the business of insurance," Jimi Grande , NAMIC's senior vice president of federal and political affairs, said in a statement.

McRaith reiterated that he plans to have the report on the recommendations for improving the regulatory processes of the insurance industry completed by the January deadline.