Boardroom Series: US Federal Regulation of Insurance: Are We Ready?

August 10, 2009
Industry Trends
North America

Abstract

Celent, a Boston-Based financial research and consulting firm, is launching a new client resource called the Boardroom Series. These monthly briefs explore the current challenges faced by insurance companies, helping C-level executives prepare for the next "hard question" their Boards of Directors are likely to ask. Each brief focuses on a single question, provides Celent's view of the issues behind the question, and defines specific action steps that will position a carrier to deliver an effective response.

The first installment of this series is US Federal Regulation of Insurance: Are We Ready? The recent Obama administration white paper on financial regulation signals increased US Federal Government involvement in the regulation of insurance. However, even with the many details in the announcement, the scope and shape of this oversight is still uncertain. Which parts of financial services operations will constitute "systemic risk"— banks, life insurers, property/casualty, all of the above? What effect will the proposed entities—the Office of National Insurance within the US Treasury Department and the Consumer Financial Protection Agency—have on reporting requirements and day-to-day operations? To what level will federal requirements be coordinated with existing state structures?

"This report gives direct, actionable steps that will allow insurers to determine their state of readiness for increased Federal regulation," says Mike Fitzgerald, senior analyst and author of the report. "Organizations can take proactive steps now that will increase the efficiency and effectiveness of their response."

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Sign in to download reports and access personalized information