There are very few sure things in life, but among the closest to a certainty is that every year, on the ubiquitous year-end lists of top risks insurers face in the year to come, regulatory risk will be at or near the top. This has been particularly true since 2008, as insurers have faced major, ongoing changes in the regulatory environment after the fiscal crisis.

Executive Summary

The FIO's study on the availability and affordability of auto insurance could end up opening Pandora's Box unless insurers educate the public about the need for insurance cost to be related to risk, says Deloitte's Howard Mills.

Now, a significant new challenge may loom ahead for property/casualty insurers.

Not since risk-based capital (RBC) was instituted have insurers been faced with such a drastic change in the regulatory system in toto. Group supervision, direct holding company supervision and global capital standards are among the new structures being created to ensure continued solvency of insurance companies and minimize the risk of a systemic failure of our financial system.

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