Federal Insurance Office Report on Reinsurance Market Long Overdue, U.S. Treasury Inspector General Says
May 20, 2014
A statutory report by the Federal Insurance Office (“FIO”) on the breadth and scope of the global reinsurance market and the critical role this market plays in supporting insurance in the United States has yet to be completed, a May 14, 2014 the U.S. Treasury Inspector General noted in the results of an audit issued May 14, 2014.
The evaluation of the reinsurance market is the last of five reports required of the FIO by Title V of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd Frank”). Deadlines on all FIO reports have been missed, prompting the Inspector General to recommend the FIO’s development of a strategic operations plan to more effectively define its priorities, process deliverables and assign accountability.
While not specifically mandated by Dodd Frank, which established the FIO, the audit was nevertheless performed as part of the Inspector General’s statutory duty to keep both the U.S. Treasury Secretary and Congress informed about any problems and deficiencies relating to the administration of Treasury programs and operations, and the necessity for corrective action. The audit objective was to evaluate the status and effectiveness of the Treasury’s process to establish the FIO in a manner that enables it to perform its functions.
To view the Inspector General’s audit report on the FIO, click here.
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