The Report begins with an overview of the insurance industry that presents and analyzes the financial performance and condition of the key U.S. insurance industry sectors, i.e., the life and health (L/H) sector and the property and casualty (P/C) sector. The industry financial overview also includes analysis of insurance industry capital markets activity, the increasing prominence of non-U.S. reinsurers, and the expanding role of alternative risk transfer mechanisms such as insurance-linked securities.
The Report next includes a section focusing on matters of consumer protection and access to insurance. This section highlights developments concerning affordability of personal auto insurance; portability of auto insurance for servicemembers; force-placed insurance (FPI) for homeowners; and topics concerning life insurance and annuities.
The Report then addresses a range of developments – at the state, federal, and international levels – which have occurred or progressed over the past year, and which have implications for the U.S. insurance sector. Discussions of domestic activities include updates addressing: the insurance-related activities of the Financial Stability Oversight Council (Council); federal supervision of designated nonbank financial companies; licensing of insurance producers (brokers and agents); private equity acquisitions of annuity writers; terrorism risk insurance; flood insurance; and captive life reinsurance. The international section addresses the EU-U.S. Insurance Project, including reinsurance collateral reform; supervision of internationally active insurance groups and global systemically important insurers; and concludes with an update on progress in developing standards for the resolution of troubled or failing insurers.