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Federal Insurance Office (FIO) Report Looks Familiar


Federal Insurance Office

The Federal Insurance Office (FIO) was created as part of the Dodd-Frank bill.  The FIO is part of the Treasury Department.  The description on the US Treasury website describes the FIO as:

Emblem of Federal Insurance Office 1789
Wikipedia – Francis Hopkinson.

The Office monitors all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the United States financial system. 

The Office coordinates and develops Federal policy on prudential aspects of international insurance matters, including representing the United States in the International Association of Insurance Supervisors. The Office assists the Secretary in negotiating (with the United States Trade Representative) certain international agreements.

The Office monitors access to affordable insurance by traditionally underserved communities and consumers, minorities, and low- and moderate-income persons. The Office also assists the Secretary in administering the Terrorism Risk Insurance Program.

The Federal Insurance Office is not a regulator or supervisor. Insurance is primarily regulated by the individual States.

USA Federal Insurance Office Building
Wikipedia – Beyond My Ken

The FIO has just released an annual report (six months late) on the State of Insurance in the US and abroad.   The report has no surprises in it.  One of the post-article commenters in one of the comment sections has asked if this was the same as what AM Best does for the industry.

Reading through the 51-page report was quite a task.  There is nothing like insurance numbers in creating a yawn.  Quite a large amount of the Executive Summary centered on the creation and justification of the FIO.

The FIO report kept referencing the SNL report.  The FIO basically borrowed the numbers from a private institution SNL Financial.  In fact, most of the charts came from SNL.

The Executive Summary has many acronyms in it for new groups that will enhance insurance regulation.  The main point in the Executive Summary is low-interest rates have prevented insurance carriers from making a profit on investments.  Therefore, the other avenue for carriers to make a profit is by underwriting gains also known as premium increases.

The earlier mentioned commenter was very accurate in their assessment.  AM Best already covers this ground, so is the insurance analysis wheel being reinvented?

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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