The U.S. Treasury Department's Federal Insurance Office on Thursday released a long-delayed report on modernizing insurance regulation, industry journal LifeHealthPro reported. The report concludes that insurance regulation is best viewed in terms of a hybrid model, where state and federal oversight play complementary roles and those roles are defined in terms of the strengths and opportunities that each level of regulation brings to improving solvency and market conduct regulation. The report calls for federal mortgage insurance oversight for all aspects of the mortgage business, a recommendation that would have be approved by Congress. The FIO recommends 18 areas for "short-term" insurance regulation improvement, focusing on capital adequacy, reform of insurer resolution practices and marketplace regulation, and nine areas of direct federal involvement in regulation.