Federal Insurance Office Releases Second Annual Report on the Insurance Industry
Sep 24, 2014
The U.S. Department of the Treasury’s Federal Insurance Office (“FIO”) released its second Annual Report on the Insurance Industry (“Report”) today, September 24, 2014. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) the FIO must report annually to the President and Congress on the state of the insurance industry and any additional information deemed relevant or requested.
To view the Report, click here.
The Report begins with an overview of the insurance industry that presents and analyzes the financial performance and condition of the key U.S. insurance industry sectors. This includes an analysis of insurance industry capital markets activity, the relevance of non-U.S. reinsurers and the expanding role of alternative risk transfer mechanisms such as insurance-linked securities.
“As the Report indicates, the insurance industry showed increasing resilience through 2013, with strong financial performance and expanded overall growth,” said FIO Director Michael McRaith. “While the insurance market is becoming ever-more global, the U.S. domestic market remains highly competitive and an important cornerstone of the national economy.”
In addition, the Report includes a section focusing on matters of consumer protection and access to insurance, including affordability of personal automobile insurance; portability of automobile insurance for service members; force-placed insurance for homeowners; and topics concerning life insurance and annuities.
Finally, it addresses a range of regulatory developments at the state, federal and international levels that have occurred or progressed over the past year and have implications for the U.S. insurance sector.
The FIO, which was established by Dodd-Frank within the U.S. Treasury Department, monitors all aspects of the insurance sector. Its duties include identifying issues that could contribute to systemic risk in the insurance industry or the U.S. financial system. It also assesses the availability and affordability of insurance to traditionally underserved populations, advises the Secretary of the Treasury on major domestic insurance policy issues and represents the U.S. on prudential aspects of international insurance matters.
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