https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AFinancial_Analysis_and_Solvency_Tracking_%28FAST%29 2026-04-29T15:09:55Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Financial_Analysis_and_Solvency_Tracking_(FAST)&diff=10932&oldid=prev 2026-03-11T17:11:15Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>📋 &#039;&#039;&#039;Financial Analysis and Solvency Tracking (FAST)&#039;&#039;&#039; is a system developed by the [[Definition:National Association of Insurance Commissioners (NAIC) | National Association of Insurance Commissioners (NAIC)]] to help state [[Definition:Insurance regulator | insurance regulators]] identify [[Definition:Insurance carrier | insurance companies]] that may be heading toward financial trouble. Serving as an early-warning mechanism within the broader [[Definition:Financial regulation | financial regulation]] framework for U.S. insurers, FAST applies a battery of [[Definition:Financial ratio | financial ratios]] and analytical tests to data drawn from insurers&#039; [[Definition:Annual statement | annual statements]], flagging companies whose results fall outside predetermined benchmarks for closer [[Definition:Solvency | solvency]] scrutiny.<br /> <br /> ⚙️ The system works by scoring each insurer against a set of ratio tests — covering areas like [[Definition:Loss reserve | reserve adequacy]], [[Definition:Premium | premium]] growth rates, [[Definition:Investment portfolio | investment portfolio]] risk, [[Definition:Operating leverage | operating leverage]], and [[Definition:Profitability | profitability]] trends — and generating an overall score that signals the level of regulatory concern. Companies that breach multiple thresholds receive higher priority scores, prompting the domiciliary state&#039;s [[Definition:State department of insurance | department of insurance]] to initiate a deeper [[Definition:Financial examination | financial examination]] or request a [[Definition:Corrective action plan | corrective action plan]]. FAST is part of the NAIC&#039;s [[Definition:Financial surveillance framework | financial surveillance framework]], which also includes the [[Definition:Insurance Regulatory Information System (IRIS) | Insurance Regulatory Information System (IRIS)]] and [[Definition:Risk-based capital (RBC) | risk-based capital (RBC)]] analysis; together, these tools give regulators a layered view of insurer health.<br /> <br /> 💡 For insurance executives and [[Definition:Financial analyst | financial analysts]], understanding how FAST scoring works is valuable even outside the regulatory context. A deteriorating FAST score can foreshadow [[Definition:Credit rating | credit rating]] downgrades, tighter [[Definition:Reinsurance | reinsurance]] terms, and reduced appetite from [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Broker | brokers]] to place business with the carrier. It also influences how aggressively a regulator might intervene during [[Definition:Market conduct examination | market conduct]] or [[Definition:Financial examination | financial examinations]]. In an era when [[Definition:Insurtech | insurtechs]] and new entrants are scaling rapidly, FAST provides a quantitative check on whether growth is outpacing the capital and reserve foundations needed to support it — a question that matters to [[Definition:Policyholder | policyholders]], investors, and regulators alike.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Insurance Regulatory Information System (IRIS)]]<br /> * [[Definition:Risk-based capital (RBC)]]<br /> * [[Definition:National Association of Insurance Commissioners (NAIC)]]<br /> * [[Definition:Solvency]]<br /> * [[Definition:Financial examination]]<br /> * [[Definition:Annual statement]]<br /> {{Div col end}}</div>

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