Federal Insurance Office (FIO) Explained: History and Role in 2025

Erika Rasure is a globally recognized expert in consumer economics, financial therapy, and transformational coaching, with a passion for empowering women to invest confidently.

What Is the Federal Insurance Office (FIO)?

The Federal Insurance Office (FIO) operates under the U.S. Department of the Treasury and was established in 2010 following the 2007-2008 financial crisis. Its mission is to advise the Treasury and other federal entities on insurance-related matters, ensuring all Americans have access to affordable insurance products.

Key Highlights

• FIO is part of the U.S. Treasury, providing expert advice on insurance policies and industry trends.
• Created under the Dodd-Frank Wall Street Reform and Consumer Protection Act after the financial crisis.
• Collaborates closely with the National Association of Insurance Commissioners (NAIC); the FIO director is appointed by the Treasury Secretary.
• Monitors insurance markets to promote availability and affordability of insurance nationwide.
• Supports the Financial Stability Oversight Council and administers the Terrorism Risk Insurance Program.

Understanding the Federal Insurance Office

Established through Title V of the Dodd-Frank Act, the FIO keeps vigilant oversight of insurance markets across the U.S., identifying potential risks that could impact financial stability on both state and national levels.

Beyond market monitoring, the FIO champions access to affordable insurance for underserved communities, reporting its findings and concerns to Congress regularly.

Additional responsibilities include advising on all insurance types except health and long-term care insurance—unless those are part of annuities or life insurance policies—and assisting in administering federal insurance programs.

The FIO director, appointed by the Treasury Secretary, works without regulatory authority, focusing on advisory roles and partnerships with organizations like the NAIC.

History of the Federal Insurance Office

The 2008 financial crisis exposed vulnerabilities in the insurance sector, notably with AIG’s near collapse after losing $99.2 billion on $1 trillion in assets. This crisis spurred the creation of the FIO in 2010 as part of comprehensive financial reforms under the Dodd-Frank Act.

Title V empowers the FIO director to assist the Treasury Secretary in negotiating international insurance agreements, fostering global cooperation and consumer protection.

Quick Insight

A covered agreement is an international pact that aligns insurance regulatory protections across borders, ensuring consumer safeguards comparable to U.S. state regulations, according to the Treasury Department.

Federal Insurance Office vs. U.S. Treasury Department

The U.S. Treasury Department, founded in 1789, manages the country’s finances, including currency, bonds, tax collection through the IRS, and national economic stability.

Its remit extends internationally, imposing sanctions and engaging in global economic security. The FIO contributes by representing U.S. interests in international insurance regulatory bodies.

Steven Seitz has led the FIO since February 2019, while Treasury Secretary Janet Yellen, the first woman in the role, has served since January 2021. The Treasury Secretary is appointed by the President, with the department’s legacy beginning under Alexander Hamilton.

Despite evolving responsibilities, the Treasury Department remains vital in managing the nation’s fiscal health, taxation, and economic policies that impact every American.

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