WASHINGTON, D.C. - The National Association of Insurance Commissioners (NAIC) received high marks from the International Monetary Fund’s (IMF) Financial Sector Assessment Program (FSAP). The Detailed Assessment Report indicates an overall high level of observance by U.S. insurance regulators of the 28 International Association of Insurance Supervisors (IAIS) Insurance Core Principles. In the report, the U.S. received a rating of Observed or Largely Observed for 25 out of the 28 IAIS Insurance Core Principles.
The report acknowledges the important role that the national state-based system of insurance regulation played in providing strength and stability during the financial crisis, noting that "strong regulation contributed to the overall resilience of the insurance sector." The IMF assessment report acknowledged areas where the NAIC and state insurance regulators are “world leading,” including national data collection and analysis capabilities. The report also sets forth recommendations for enhancements in certain regulatory areas such as group wide supervision and anti-money laundering. Regulators have indicated their commitment to reviewing and considering all recommendations included in the report.
"The FSAP process has provided U.S. insurance regulators with a timely opportunity to undertake a comprehensive self-assessment of the national insurance regulatory system against international standards," said Jane L. Cline, NAIC President and West Virginia Insurance Commissioner. "The process also serves as a useful platform for demonstrating to the global regulatory community how well the national state-based system of insurance regulation functions. U.S. insurance regulators will thoroughly review the report’s recommendations and take them into account when initiating and implementing insurance regulatory reforms. We look forward to engaging in continuing dialogue with the IMF on how we can continue to contribute to improved international financial stability and supervision of the global insurance sector."
Continuing discussions about how to better understand the U.S. insurance sector through the prism of the FSAP will take place this week during the NAIC International Insurance Forum, May 17-18, in Washington, D.C.
Click to download the Detailed Assessment Report from the IMF.