Federal Insurance Office Releases Third Annual Report to the Insurance Industry
Sep 28, 2015
New FIO Report Highlights Key Developments Throughout the U.S. Insurance Industry
The U.S. Department of the Treasury’s Federal Insurance Office (“FIO”) released its third Annual Report on the Insurance Industry (“Report”) today, September 28, 2015.
Under 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 other information deemed relevant or requested.
“As this year’s report makes clear, the United States continues to have the most diverse and competitive insurance market in the world,” said FIO Director Michael McRaith. “From small mutual companies in rural counties, to massive firms with global reach, U.S. insurers remained a key participant in the U.S. economy in the last year.”
The Report begins with an overview and analysis of the financial performance and condition of the key U.S. insurance industry sectors, including the life and health sector, and the property and casualty sector. It includes an examination of the risk that continued low interest rates could pose to the life insurance sector, as well as a review of insurance industry capital markets activities, including the use of alternative risk-transfer mechanisms.
Also addressed is a cross-section of issues relating to consumer protection and access to insurance, such as marital status as a rating and underwriting factor, natural catastrophe insurance, and retirement security. A range of recent regulatory developments with implications for the U.S. insurance sector is highlighted.
The Report’s international section then touches on recent developments at the International Association of Insurance Supervisors and summarizes progress of the EU-U.S. Insurance Project. It concludes with updated recommendations for modernizing and improving the U.S. system of insurance regulation, such as described in the 2013 Modernization Report.
The FIO, which was established within U.S. Treasury as part of Dodd-Frank, monitors all aspects of the insurance sector and works to identify 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 United States on prudential aspects of international insurance matters.
Click here​ to view the Report.
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