Business of Insurance Regulatory Reform Act of 2025

The Business of Insurance Regulatory Reform Act of 2025 would amend the Consumer Financial Protection Act of 2010 to shift or limit the scope of the Consumer Financial Protection Bureau’s (CFPB) enforcement authority when dealing with entities regulated by a state insurance regulator. Specifically, for entities regulated by a state insurance regulator, the bill would prohibit CFPB enforcement under the CFPA to the extent those entities are engaged in the business of insurance. It would also require that the CFPB’s enforcement of any enumerated consumer laws or laws transferred under subtitles F or H be narrowly construed when the entity is engaged in the business of insurance. Additionally, the bill adds a rule of construction directing that enforcement of the CFPA should be broadly construed in favor of the state insurance regulator’s authority over such entities. In short, the bill aims to grant greater regulatory primacy to state insurance regulators over overlapping activities that are part of insurance business and to constrain CFPB action in those areas. Status and context: The bill is introduced in the Senate and would revise how federal consumer financial law interacts with state-regulated insurance activity. It does not enact into law unless it clears Congress and is signed by the President. The sponsors include several senators, indicating bipartisan attention to clarifying regulatory roles where insurance and certain consumer financial authorities may intersect.