WASHINGTON — David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI) issued the following statement in response to the Department of Housing and Urban Development’s (HUD) release of an advance notice of proposed rulemaking (ANPR) soliciting public comments on Reconsideration of HUD’s Disparate Impact Rule. The ANPR also references HUD’s May 15, 2017 Federal Register notice seeking input on ineffective regulations and the October 26, 2017 report issued by the Secretary of the Treasury that recommended HUD reassess its disparate impact rule as applied to insurers.
“HUD today announced it will re-consider its disparate impact rule that inappropriately swept property casualty insurance into federal housing regulation.
“Reconsidering the regulation is an important step in reversing this harmful intrusion into the states’ regulation of insurance. It is clear overreach by a federal agency that would result in duplicative regulation at the cost of consumers.
“The business of insurance, where prices are based on predicting a future of risk of loss, is fundamentally inconsistent with disparate impact liability. This regulation would require insurers to consider factors that are not risk-based.
“PCI will analyze the rule and submit comments to protect state-based insurance regulation and the competitive insurance marketplace.”