Treasury Secretary Henry Paulson came out in favor of an Optional Federal Charter on March 31, 2008.
Proponents promise a freer, more open market for insurance that would benefit consumers, increase product innovation, and help the economy.
They also say that the current state-run regulatory system makes it more difficult for insurers to bring innovative products to the market, and consumers are the ones who ultimately pay the price for the inefficiencies of the state-run regulatory system through higher prices.
[4] Both the 2007 Bloomberg-Schumer Report [5] and the Financial Services Roundtable’s Blue Ribbon Commission on Mega Catastrophes[6] have called on Congress to enact Optional Federal Charter legislation.
Opponents also argue that the state-based system does a more efficient job responding to local consumer needs and desires.