Future of SAP

Question 1

Financial Sector Assessment Program (FSAP)

Answer 1

peer review process for financial services regulatory regimes

Question 2

NAIC benchmarked against ICPs

Answer 2

Insurance Core Principles (ICPs) developed by the International Association of Insurance Supervisors (IAIS) require valuation of assets and liabilities based on future cash flows that consider riskiness and time value of money; this is contrary to SAP valuation approach which does not reflect time value of money

Question 3

ComFrame

Answer 3

common supervisory framework developed for international insurers; U.S. regulators have expressed concerns about the valuation approach under ComFrame

Question 4

functions of FIO (3)

Answer 4

• coordinate federal efforts and develop federal policies on international insurance matters, including representing the U.S. in IAIS
• determine whether state insurance measures are preempted by covered agreements; FIO can preempt state law if deemed necessary
• consult with the states regarding insurance matters of national importance