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Financial Regulation monitors the financial solvency of the
nearly 1,900 insurance companies licensed in the state of Ohio.
Financial Regulation reviews financial statements of every
company licensed in Ohio and oversees complex transactions
that can include billions of dollars in managed assets to ensure
that insurance companies have enough money to pay claims filed
by consumers.
It closely monitors the financial condition of insurance companies
doing business in Ohio by conducting in-house analyses of financial
statements and all other supplemental filings made by insurers.
Financial Regulation also monitors insurers’ statutory
and solvency compliance on an ongoing basis and conducts periodic
on-site field examinations.
Financial Regulation has four main areas: Analysis, Examination,
Regulatory Action and Administration.
Financial Analysis:
Financial Analysis monitors the risk profile, financial condition
and operating performance of insurance companies transacting
business in Ohio using risk and company ratings processes.
Financial Analysis updates each insurer's risk and company
ratings quarterly based on an assessment and evaluation of
corporate governance and other qualitative and quantitative
measures. Based on each insurer's risk and company ratings,
Financial Analysis works closely with Financial Examination
and Regulatory Action to allocate resources and develop a
surveillance strategy, including timing and nature of full
scope and limited scope examinations. Financial Analysis
is also responsible for reviewing financial transactions
such as mergers, acquisitions, re-domestications, dividends,
reinsurance agreements and inter-company agreements.
Financial Examination:
Financial Examination conducts on-site financial examinations
of insurance companies which claim Ohio as their home state.
Ohio law requires a financial examination be conducted at
least once every 5 years. However, the frequency of examinations
is determined based on an insurer's performance and risks
management practices. This allows the Department to focus
its resources on those companies with the highest degree
of regulatory concern.
Regulatory Action:
Regulatory Action is responsible for determining and implementing
the appropriate regulatory course of action for companies
with weak performance, inadequate risk management practices,
and a higher degree of regulatory concern. Regulatory Action
facilitates communications with the Analysis and Examination
areas, other Department divisions, the Superintendent, other
state insurance departments, and other regulatory agencies
regarding regulatory actions taken or planned. Actions include
requiring of a corrective action plan from companies with
a higher risk of failure and then monitoring the board's
and senior management's implementation of the corrective
actions.
Administration:
Administration has varying responsibilities including surveillance
technology and automation enhancements, fiscal support and
company licensing.
Contact Financial Regulation
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