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The U.S. Department of the Treasury’s Federal Insurance Office (FIO) today released its report on the Breadth and Scope of the Global Reinsurance Market and the Critical Role Such Market Plays in Supporting Insurance in the United States (the report). The report is required under Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The report summarizes the history of reinsurance as a product and an industry, and outlines the various functions of reinsurance. The report emphasizes that global reinsurers are vital to U.S. insurers and thus important for the general economic prosperity of the United States, including through enhanced availability and affordability of insurance. As the report indicates, the important role of global reinsurers may be most apparent following natural disasters and other catastrophes.
FIO, which was established within Treasury as part of the Dodd-Frank Act, monitors all aspects of the insurance sector, including identifying issues that could contribute to systemic risk in the insurance industry or the U.S. financial system. FIO also assesses the availability and affordability of insurance to traditionally underserved populations, advises the Secretary of the Treasury on major domestic insurance policy issues, and represents the United States on prudential aspects of international insurance matters.
The report is available here: http://www.treasury.gov/initiatives/fio/reports-and-notices/Documents/FIO%20-%20Reinsurance%20Report.pdf
For more information on FIO, please visit www.treasury.gov/initiatives/fio
