Anti-trust Exemption for Insurers Threatened?

A bill introduced into the House of Representatives would strip insurers of the antitrust exemptions enjoyed under The Act of March 9, 1945, more commonly known as the McCarran-Ferguson Act. The legislation, the Insurance Industry Competition Act of 2009 (H. R. 1583), was introduced by Rep. Peter DeFazio (D-Ore.) and has five co-sponsors.Insurers vehemently oppose elimination of the anti-trust exemption. On its Web site the National Association of Mutual Insurance Cos. states the following: ”There is no credible evidence that the cost, availability, or quality of insurance products would be enhanced if the McCarran-Ferguson limited antitrust exemptions were repealed or modified. Any change in the existing antitrust regime and repeal or modification to the current limitations could decrease market stability, reduce affordability and availability of products, stifle innovation and expansion, diminish industry efficiency, and ultimately, inhibit rather than increase competition in the insurance marketplace.”