The insurance industry report focused on the overall insurance industry's financial performance, condition and outlook for 2023 and beyond.
Last week, the Federal Insurance Office (FIO) released its annual report on the state of the insurance industry, as well as a separate report on the Terrorism Risk Insurance Program (TRIP).
Every year, FIO, which was created as part of the Dodd-Frank Act in 2010, is required to submit an annual report to Congress and the president on the insurance industry. This year's report comes on the heels of FIO's recent Federal Advisory Committee on Insurance (FACI) meeting, where the Big “I" was represented by Quincy Branch.
The 2022 insurance industry report focused on the overall insurance industry's financial performance, condition and outlook for 2023 and beyond. Specifically, it notes that “the U.S. insurance industry was able to maintain its financial health during this period, despite the continuing effects of the COVID-19 pandemic, higher inflation, and a changing interest rate environment."
The report also highlights key issues in the cyber market as well as private equity's growing role in the insurance industry. Graham Steele, U.S. assistant secretary for the Treasury for financial institutions, noted that “the Federal Insurance Office's annual report is an important analysis of the U.S. insurance markets and related issues that may impact financial stability."
FIO also released a separate report on the effectiveness and strength of TRIP, which was created in the aftermath of the 9/11 terrorist attacks. TRIP is a critically important program as the threat of terrorism is still ever-present and the unique nature of this risk has not changed. This report is designed to “help FIO better evaluate the program's response to cyber-related incidents that may have implications for program effectiveness and FIO's administration of TRIP," according to the report.
The Big “I" will continue to work with Congress, FIO and others to advocate for a strong independent agency system.
Joseph Cortina is staff administrator, Big “I" crop insurance task force.