Insurance Regulation: State Reinsurance Oversight Increased, but Problems Remain
GGD-90-82
Published: May 04, 1990. Publicly Released: May 04, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed property/casualty reinsurance practices and regulations, focusing on: (1) the types and limitations of reinsurance activity data available to regulators; (2) the extent of state reinsurance regulation; and (3) recent regulatory improvements.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| While regulatory controls over reinsurance have increased, some controls have not yet been fully implemented by the states and NAIC, and many states have not yet adopted other controls. Thus, Congress should continue its oversight of state efforts. Congress could do so by focusing on the effectiveness of recent reforms and the extent to which changes are implemented across the states. |
Closed – Not Implemented
|
Given the importance of reinsurance to the continued health and solvency of the U.S. insurance industry, the recommendation is still valid. While GAO expects the subcommittee to continue its inquiry, oversight is an ongoing process, and no action is intended to bring this recommendation to closure. Oversight hearings are being held by several congressional committees on insurance. |
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Congressional oversightstate relationsFinancial managementFinancial recordsInsurance companiesInsurance lossesInsurance regulationInternal controlsReporting requirementsState law