The U.S. insurance regulatory system is in a state of major disrepair, an international body that monitors and makes recommendations about the global financial system said in a new report.

The so-called "peer review" of the U.S. insurance regulatory system by the Financial Stability Board (FSB) said one option the country should strongly consider is "migrating towards a more federal and streamlined structure" as a means of "achieving greater regulatory uniformity."

The report said that U.S. authorities should promote greater regulatory uniformity in the insurance sector by conferring additional powers and resources at the federal level where necessary.