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E61 211515
April 19, 2017

Secretary Steven T. Mnuchin
US. Department of the Treasury
1500 Avenue, NW
Washington, DC. 20220

Dear Secretary Mnuchin:

We write to urge you to appoint a director to the US. Treasury Department?s Federal Insurance
Of?ce or As you know, the Dodd-Frank Wall Street Reform Act created FIO to
monitor all aspects of the insurance industry including ?the extent to which traditionally underserved
communities . . . have access to affordable insurance products.? A recent study demonstrating racial
disparities in the cost of auto insurance make clear the need for a fully staffed FIO, especially as the
Of?ce continues its work to engage the auto industry and track affordability.

Last week, ProPublica released a study showing that some large insurers in California, Illinois,
Texas, and Missouri charged residents of minority neighborhoods an average of 30 percent more in
premiums than individuals living in areas with comparable accident costs. The study controlled for
factors like age and accident history and found that these racial disparities persisted even in upper middle
class minority communities. The ProPublica study is consistent with recent FIO ?ndings that
approximately 19 million Americans live in areas many of which are low?to?moderate income minority
neighborhoods where auto insurance is deemed unaffordable by the Of?ce. The implications of these
studies are very concerning and they underscore the need for FIO to continue to engage the auto insurance
industry, collect more information, and conduct a more comprehensive analysis of the auto insurance
market in underserved communities.

Unaffordable auto insurance can often be a barrier to economic opportunity for Americans. High
premiums can limit the employment options available to individuals, they can chip away at household
budgets, and they can push cash-strapped individuals to make the unfortunate decision to drive without
insurance.

Appropriately, FIO announced in January that it will continue to pursue data from the largest auto
insurers to develop a more comprehensive affordability analysis. By appointing a director to FIO, the
Administration will allow Congress to better hold FIO accountable and to ensure that the Of?ce?s work
on auto insurance affordability is complete.

Accordingly, the undersigned Members of Congress urge you to swiftly vet and appoint a director
to FIO, with an toward instructing the Of?ce to continue its work on tracking auto insurance
affordability in underserved markets.

Sincerely,

Gregory meks A Green Keithl/E llison
Member of Congress Members of Congress Member of Congress

 

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Frederica S. Wilson A1 Lawson, Jr. Vicente Gonzalez
Member of Congress Member of Congress Member of Congress