Department of Treasury Releases Report on Regulation of Insurance

Earlier this week, the Department of the Treasury released a report that examined the current regulatory framework for the insurance industry and made recommendations on how to improve it. The report concluded that entity-based systemic risk evaluations of insurance companies are generally not the best approach for mitigating risk. Alternatively, the report recommended that federal and state regulators focus on potential risks arising from specific insurance products and insurer activities. The report also concluded that state insurance regulators and the Federal Reserve should work to harmonize their respective work on insurance capital initiatives and liquidity risk management in the insurance industry. The full report may be found here.