Posted on 15 Mar 2013 by Neilson
The Federal Insurance Office is set to release long-awaited reports on the U.S. insurance and reinsurance by early summer, said FIO Director Michael McRaith, during a March 13 meeting of the Federal Advisory Council on Insurance in Washington.
Under the Dodd-Frank financial reform act, FIO was required to produce a series of reports to Congress on the state of insurance and reinsurance regulation. One of the reports is more than a year overdue.
Under deadlines laid out in law, FIO was required to release by Sept. 30, 2011 an annual report to Congress on the general state of the insurance industry. A second report on the state of the global reinsurance market was due Sept. 30, 2012. Another report on the ability of state regulators to access reinsurance information was due Jan. 1, 2013.
But the most anticipated report, on ways to improve and modernize the U.S. insurance regulatory system, was due Jan. 21, 2012. Industry representatives have mentioned their interest in the highly anticipated reports during recent National Association of Insurance Commissioners and National Conference of Insurance Legislators meetings. To date, none of the reports have been released.
"We expect these reports will be out before July," McRaith said.
McRaith's announcement comes after the chairman of the U.S. House Financial Services Committee criticized FIO last month for failing to meet statutory deadlines for releasing the reports. U.S. Rep. Jeb Hensarling, R-Texas, said after missing multiple deadlines set by federal law, FIO should release the reports "without further delay." Hensarling's call came in the committee's new oversight plan (Best's News Service, Feb. 14, 2013).
Despite those complaints, FIO has drawn praise from the industry for its role on the international stage. FIO has represented the United States in talks with the International Association of Insurance Supervisors over how to integrate the U.S. regulatory system with the new Solvency II regulatory framework being implemented in the European Union.
David Snyder, vice president for international policy at the Property Casualty Insurers Association of America, said in a recent interview with Best's News Service, that FIO has played a positive role as regulators work to develop a Common Framework, or ComFrame, to bring the two systems together.