insurance office of america ,The United States has the largest insurance market in the world by IMF bank. Whether in the global insurance industry or in the domestic financial industry in the United States, the U.S. insurance market occupies a very important position.
From the perspective of insurance penetration
the average American has 5 insurance policies, and China has 0.1 insurance policies per capita. Why is it that when talking about insurance in China, people are as fearful as "talking about a tiger's face," but in the US, insurance can spread people's lives? This is probably related to the American insurance regulatory system and the degree of trust established by the people.
The U.S. insurance regulatory system has been operating for more than 140 years. Let's take a look at how it works in detail.
*U.S. Insurance Regulatory System
The United States implements a dual regulatory system of the federal government and the state government for the insurance industry. The federal government and the state government have their own independent insurance legislation and management powers. In 1850, New Hampshire first established the first insurance committee to supervise the state’s insurance industry. This can be regarded as the earliest insurance regulatory agency in the United States. By 1871, almost all states had established insurance regulatory agencies.
In recent years, the US federal government has gradually strengthened the supervision of the insurance industry to meet the needs of supervision, and established an insurance supervision system based on the National Association of Insurance Supervisors and state insurance supervision agencies. Thanks to the efforts of the National Association of Insurance Supervisors (NAIC), the contents of the insurance laws of each state in the United States have not changed much.
insurance office of america
The National Association of Insurance Supervisors (NAIC) is a department that performs regulatory functions on the U.S. insurance industry. It is a non-profit organization composed of insurance regulatory officials from 50 U.S. states, the District of Columbia, and 4 U.S. territories. The association was established in 1871 with the purpose of coordinating the supervision of interstate insurance companies by states, with a particular emphasis on the supervision of the financial status of insurance companies. At the same time, the association also provides consulting and other services.insurance office of america.It is worth mentioning that NAIC has a nationwide database of the financial status of insurance companies. State insurance regulatory agencies and other data users can obtain information from it through computer networks. As NAIC requires insurance companies to have unified financial statements and accounting standards, its database information includes the annual financial information of nearly 5000 insurance companies in the last 10 years and the quarterly financial information of the last two years, and some annual information data can be traced back to The mid-70s. NAIC's financial database has played an important role in helping states supervise the insurance industry, monitor the solvency of insurance companies, and implement other financial analysis.
Insurance terms and policy
The computer of each state's insurance supervisory department is connected to the National Association of Insurance Supervisors' network. The association’s financial database has played an important role in helping states supervise the insurance industry, monitor the solvency of insurance companies, and perform other financial analysis. State insurance regulators and association officials can obtain data through various application systems and prepare standardized reports or tax status reports to meet specific requirements. In addition, the association also has a number of other databases, including the "Regulatory Information Retrieval System" (RIRS) and the "Special Activities Database" (SAD), these two databases enable regulators to control individual or Information that an insurance company has been inspected for suspected illegal or illegal transactions. As a supplement to the "Supervisory Information Traceability System" and the "Special Operations Database", the association has also developed a national customer complaint database, a database on insurance company employees and managers, and a general system.
National and internation insurance
The purpose of the supervision of the National Association of Insurance Supervisors is to detect insurance companies with financial problems as early as possible and take timely measures to quickly rescue them from financial difficulties to ensure the rights and interests of policyholders and shareholders. Unifying the financial reporting system, auditing system and formulating financial standards are the prerequisites for the association to implement supervision.
Guideliness for the policy holders
Under the guidance of the National Association of Insurance Supervisors, the insurance regulatory agencies of each state use a series of tools to evaluate the financial status of insurance companies to avoid the occurrence of insufficient solvency. These tools mainly include: insurance regulatory information system, financial analysis and solvency tracking system, risk-based capital monitoring system, and various conventional and unconventional on-site audits.
the National Association of Insurance Supervisors uses the statutory annual financial statements provided by insurance companies to calculate the Insurance Regulatory Information System (IRIS) indicators. The purpose of applying the IRIS indicator system is to enable regulators to discover targets that need key monitoring from the objects under supervision. The process of calculating indicators based on financial statement information is called the IRIS statistical phase. The annual financial statements of all U.S. life insurance companies go through the IBIS statistical stage. If the IRIS result of a particular insurance company is extremely abnormal, the National Association of Insurance Supervisors will first report the result to the competent authority of the state where the company is registered and other states where the company conducts business activities. Therefore, if the IRIS result is not good, it usually means further investigation by the insurance supervisory authority of the state where the company is located, but the association does not recommend that the state where the company is located use the IRIS result as the only basis for assessing the company's future financial status. The association has achieved the purpose of quantitative supervision and early warning of the solvency of life insurance companies by determining the IRIS indicator system.