Vermont Insurance Industry – Governance, Risk and Compliance

The Vermont insurance industry research report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report also gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation, and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Vermont Insurance Market Dynamics

The Department of Financial Regulation (DFR) took over the task of supervision of the Vermont insurance industry and is instrumental in ensuring the stability and efficient functioning of insurance and reinsurance companies. It functions in accordance with the guidelines stipulated in the Vermont Statues on Banking and Insurance.

Vermont Insurance Industry License Types

The key types of licenses issued in the Vermont insurance industry are life insurance, non-life insurance, license for insurance intermediaries, and license for reinsurance.

Life insurance license

Insurers with a life insurance license can underwrite and sell insurance contracts related to risks such as life and annuities.

Non-life insurance license

Non-life insurers underwrite and sell contracts related to fire, marine, surety, disability, plate glass, liability, workers’ compensation, common carrier liability, boiler and machinery, burglary, credit, sprinkler, team and vehicle, automobile, aircraft, mortgage guaranty, insolvency, legal insurance, and miscellaneous.

License for insurance intermediaries

Insurance intermediaries, which include insurance agents and brokers, act as mediators between the insurer and the insured. An intermediary sells, solicits, and negotiates insurance contracts with customers on behalf of the insurance companies for compensation.

License for reinsurance

Reinsurers are insurance companies that sell insurance policies to other insurance companies, protecting them from the risk of unexpected financial losses. A reinsurer is not permitted to operate in any type of insurance business in Vermont, without authorization or license from the commissioner. Any domestic stock or mutual insurance company or reciprocal insurance company may reinsure only the kinds of insurance business that it is licensed to do in this state or which it is otherwise authorized to reinsure by the terms of its license.

Key Bodies Overseeing the Vermont Insurance Industry

The key bodies that oversee the Vermont insurance industry are the International Association of Insurance Supervisors (IAIS), National Association of Insurance Commissioners (NAIC), Federal Insurance Office (FIO), American Insurance Association (AIA), National Association of Mutual Insurance Companies (NAMIC), Property Casualty Insurers of America (PCI), Reinsurance Association of America (RAA), and the Vermont Captive Insurance Association (VCIA).

International Association of Insurance Supervisors (IAIS)

The IAIS is a membership-driven global organization that represents insurance regulators and supervisors of more than 200 jurisdictions in more than 140 countries. The association also includes 135 observers representing industry associations, professional associations, insurers, reinsurers, consultants, and international financial institutions. The primary objectives of the IAIS are to promote effective and globally consistent supervision of the insurance industry. This develops and maintains fair, safe, and stable insurance industries for the benefit and protection of policyholders, contributing towards global financial stability.

National Association of Insurance Commissioners (NAIC)

The NAIC is a voluntary association created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five US territories. It was created to address the need to coordinate the regulation of multistate insurers. With the help of the NAIC, state insurance regulators conduct peer reviews, establish standards and best practices, and coordinate their regulatory oversight. The main aim of the NAIC is to assist state insurance regulators in serving the public interest and achieving fundamental insurance regulatory goals.

Federal Insurance Office (FIO)

The FIO was established under the US Treasury Department in accordance with the Dodd-Frank Act. It is headed by a Director appointed by the Secretary of the Treasury. The FIO is not a regulatory agency but plays an important role by providing expertise and advice regarding insurance to the Treasury Department and other US federal agencies. It works closely with the NAIC to engage in international discussions with US insurance regulators and to serve as an information source for the federal government.

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Market report overview

Scope

This report provides:

• Details of the insurance regulatory framework in Vermont.
• Details of the rules and regulations governing insurance products and insurance entities.
• Lists and analysis of key trends and developments pertaining to the country’s insurance regulatory framework.
• Analysis of the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
• Details of taxation imposed on insurance products and insurance companies.
• The latest key changes and changes expected in the country’s insurance regulatory framework.
• Key regulations and market practices related to different types of insurance products in the country.
• Rules and regulations pertaining to key classes of compulsory insurance and the scope of non-admitted insurance in the country.
• Key parameters including licensing requirements permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations.
• Details of the tax and legal systems in the country.

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
• Gain insights into the insurance regulatory framework in Vermont.
• Track the latest regulatory changes and expected changes impacting the Vermont insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
• Understand key regulations and market practices pertaining to various types of insurance product.