How Will President-Elect Donald Trump Affect Deregulation
Now that the contentious presidential race is over and the nation prepares for a Trump presidency, the unknowns seem to trump the certainties of what policies will govern the next four years. What will a Trump administration mean for regulatory exclusions in D&O Liability coverage and other policies specific to the insurance world? We are the insurer so this line makes it appear that we would benefit greatly from these changes.
Implications on Deregulation for Insurers/Possible D&O Liability Ramifications
Will the Dodd-Frank Act be repealed? Will the D&O policy regulatory exclusion be eliminated? A best-case scenario for insurers is that growth and interest rates soar and inflation declines under the Trump administration. That and much, much more remains to be seen. What is certain, is that the people in all industries are anxious to find out what’s in store for the next four years.
Will the Federal Register Shrink?
As noted in Forbes, under the Obama administration the annual page count of the Federal Register (the document where proposed and final rules and regulations are published daily) is breaking records. President Obama is responsible for seven of the 10 highest Federal Register page counts in history. Each of those pages represents regulation. During his candidacy, president-elect Trump vowed to reduce regulations an astounding 70% during his presidency. That’s an ambitious goal. Even if he achieves half of that goal, that’s a huge step forward for deregulation.
Will A Trump Presidency Mean Regulatory Restraint?
Restraint may not be a word most people associate with the unapologetically brash president-elect Trump. Ironically, though, from a regulatory perspective signs seems to indicate that restraint will be the guiding force. The Forbes article suggests specific examples of how Trump is likely to use restraint to achieve deregulation by chipping away at bureaucracy:
- Freeze regulations.
- Encourage regulatory reviews and increase resources to conduct them.
- Increase the number of rules required to undergo a cost analysis.
- Publish a yearly regulatory transparency “report card.”
- Lower the indirect cost of regulations.
About Euclid Exec
Euclid Executive Liability Managers is a managing general agency offering directors and officers liability for public, private, and non-profit companies; employment practices liability; and fiduciary liability insurance. To learn how we can help you manage your business risks, contact us at 630.238.1900.