United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Insurance Core Principles

U.S. insurance supervision has been significantly strengthened in recent years. Lessons have been learned from the financial crisis and many of the recommendations of the 2010 FSAP are being addressed. Insurance has been brought within the scope of system-wide oversight of the financial sector. The establishment of the Federal Insurance Office (FIO) has created a mechanism for identifying national priorities for reform and development. The extension of the Federal Reserve Board's responsibilities to cover consolidated supervision of insurance groups has strengthened supervision of the affected groups (now covering around 30 percent of total premium income in the United States) and promises to empower U.S. regulators in the negotiation and implementation of new international standards of insurance regulation. State regulators have been adjusting to the new regulatory architecture, at the same time progressing important reforms such as the solvency modernization initiative and significantly strengthening group and international supervision.