The biggest and most complex U.S. insurance firms are in line to face capital standards that are simpler and less costly than those imposed on Wall Street banks, Federal Reserve Governor Daniel Tarullo said Friday.
The Fed "in coming weeks" will seek outside comment on its plan for creating insurance-industry rules mandated by the Dodd-Frank Act, Tarullo said in a Washington speech. His comments revealed the long-awaited outlines of how the Fed will regulate insurers, a controversial process that MetLife Inc. has already sued over to avoid tougher oversight.
|Evaluate capital in a "relatively simple" set of risk categories
Companies such as American International Group Inc. and Prudential Financial Inc. — deemed important enough that their failure could threaten the broader economy — would get regulations that evaluate their capital in a "relatively simple" set of risk categories, according to Tarullo, the Fed governor responsible for managing regulatory matters.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
