FOR IMMEDIATE RELEASE

STATE REGULATORS RECEIVE HIGH MARKS IN IMF FSAP ASSESSMENT OF U.S.
INSURANCE SECTOR

WASHINGTON, D.C. (May 17, 2010) - 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 HERE to access the Detailed Assessment Report from the IMF.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

You are currently subscribed to the “NAIC News Release” electronic service. For information regarding this service, please contact the NAIC Communications Division, 2301 McGee Street, Kansas City, MO 64108, 816-783-8909.

To unsubscribe from NAIC Electronic Services, send a blank e-mail to
NAIC Opt Out services.