December 7, 2001Ms. Frances J. O’ConnorDirector-Federal/International RelationsInsurance DepartmentState of ConnecticutP.O. Box 816Hartford, CT 06142-0816Dear Ms. O’Connor:Thank you for the opportunity to review the preliminary draft of the risk mappings created by theFederal Reserve and the National Association of Insurance Commissioners and for taking the time toreview the project with us by conference call.Our understanding is that your request for comments is limited to the Mapping of Life InsuranceRisks and the Mapping of Property/Casualty Risks shown in the Comments Section of this draft, as thefirst two columns cannot be changed.Insurance and banking are notably different, as you are well aware. These differences in somecases are basic--such as the types of risks covered, the risk assessment time periods, and the risktriggering events. Other important differences that need to be considered in understanding risks facedby banks and insurers include how they are identified, managed, and regulated. Examples of thesedifferences include: (1) the use of a valuation actuary to assess asset adequacy, and (2) the differentguarantee fund systems. In addition, these and other factors have also created differences among theThe American Academy of Actuaries is the public policy organization for actuaries practicing in all specialties within the United States. A majorpurpose of the Academy is to act as the public information organization for the ...