There has been some visible progress in the development of the FIO over the past several months. The Department of Treasury formed a committee, the Federal Advisory Committee on Insurance (FACI), to provide advice and recommendations to the FIO. The FACI, composed of members from the insurance industry, academia, consumer advocates and state insurance regulators, recently held its first meeting, which was largely organizational in nature. FIO Director McRaith chaired the meeting, and announced the appointment of the CEO of Marsh & McLennan Companies as the chair of the committee. Director McRaith focused his comments on guiding the committee to the consideration of broad international and demographic issues such as the so-called “silver tsunami” or wave of persons at or near retirement in the US as a potential systemic insurance issue.
Following this guidance, the FACI formed two subcommittees, which will address international competition between insurance companies and issues relating to the aging US population and the potential impact of changing demographics on the international insurance market. This focus reflects one of the FIO’s stated purposes – to play a leading role in being the voice of the US in international insurance markets and international insurance regulation efforts. Furthering that international focus, the FIO is now a member of the Executive Committee of the International Association of Insurance Supervisors.
Another focus of the FIO stems from the Dodd-Frank Act’s requirement that the FIO provide Congress a report on how to improve and modernize insurance regulation. That report is now over three months overdue, and is widely anticipated. It is not known what role, if any, the FACI is playing in the preparation of that report, or when the report may be made public.