True, the FIO has subpoena power and McRaith said its ability to do so is “an important component of our authority;” but the office will only seek to exercise its power “as a last resort to obtain critical information,” after a company refuses to offer the information.

The speech was clearly meant to update his audience on the progress made by the FIO, as it works to lay its foundation, as a “monitor” of the insurance sector while also acting as a single point of contact for the industry at the federal level.

He said circumstances will likely dictate FIO's focus and the definition of “monitor,” but that doesn't mean the FIO “will sit idly by while the world spins.”

McRaith said, “FIO is poised to be flexible enough to not only be responsive to current events affecting the insurance industry, but also take the lead in facilitating dialogue and direction regarding the insurance sector both nationally and internationally.”

McRaith, who was director of the Illinois Department of Insurance before his appointment to lead the FIO, said he has a “great respect for state regulators,” and remembered a time only a short while ago when he was working to reform the workers' compensation system in Illinois.

Additionally, McRaith said, the Department of Treasury “understands, appreciates and respects” the insurance industry.

McRaith acknowledges the anticipation surrounding the release of the FIO's report on insurance modernization.

He says the report will be released late this month, and while it will be a “broad undertaking,” it will only be a “small slice of our total responsibility,” as it cannot “address every issue that warrants improvement or modernization.”

The scheduled report will not be FIO's last, he adds.