Federal Insurance Office Report: The Federal Insurance Office Releases Report on How to Modernize and Improve Insurance Regulation in the United States

Sullivan & Cromwell LLP - December 16, 2013

On December 12, 2013, the Federal Insurance Office released its long-awaited report to Congress on how to modernize and improve the system of insurance regulation in the United States, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Report recommends various initiatives and modifications regarding state insurance regulation and substantive areas for federal involvement in insurance regulation, emphasizing the need for improved “uniformity in the U.S. regulatory system” and concluding that “the proper formulation of the debate at present is not whether insurance regulation should be state or federal, but whether there are areas in which federal involvement in regulation under the state-based system is warranted.” The Report asserts that the “necessity for federal involvement should depend on […] whether states can take measures to regulate effectively and with uniformity, the degree of the national or federal interest, and the nexus of the issues and the firms with the global marketplace.”