United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Insurance Core Principles
IMF Staff Country Reports, April 2, 2015
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- United States: Financial Sector Assessment Program-Detailed Assessment of Observance on the Insurance Core Principles
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Bibliographic details
- Published: April 2, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475546033.002
Executive summary and key findings
- The assessment finds a reasonable level of observance of the Insurance Core Principles.
- Areas of strength:
- At state level, a powerful capacity for financial analysis with peer group review and challenge through the processes of the National Association of Insurance Commissioners.
- Lead state regulation is developing.
- A network of international supervisory colleges has been put in place.
- Key areas for development:
- The valuation standard of the state regulators, especially for life insurance.
- Group capital standards.
Context and scope
- Report type: IMF Staff Country Reports.
- Subjects covered: Financial institutions; Financial regulation and supervision; Insurance; Insurance companies; Insurance supervision; Labor; Legal support in revenue administration; Revenue administration.
- Keywords: corporate governance; CR; financial condition; Global; Insurance; Insurance companies; insurance coverage; insurance department; insurance group; insurance regulator; Insurance supervision; ISCR; Legal support in revenue administration; life insurance; parent company; risk management; State regulator.
Findings related to supervision and regulatory framework
- State-level supervisory architecture:
- Strong financial analysis capabilities at state regulators.
- Peer group review and challenge mechanisms operate via National Association of Insurance Commissioners processes.
- Developments in supervisory coordination:
- Lead state regulation is developing to address multi-state supervision.
- International supervisory colleges established to support cross-border supervision.
- Shortcomings identified:
- Valuation standards applied by state regulators require development, with particular concern for life insurance valuation.
- Group capital standards are inadequate and need strengthening.
Implications for policy and priorities for reform
- Strengthen valuation standards at the state regulator level, prioritizing life insurance valuation methodologies and consistency.
- Develop and implement robust group capital standards to better capture group-level risks.
- Continue to support and expand mechanisms for peer review and challenge among state regulators through the National Association of Insurance Commissioners.
- Advance lead state regulatory frameworks and international supervisory college practices to improve coordination for multi-state and cross-border insurers.
Content in this bundle
- _cr1590 — Executive Summary