Global regulatory efforts on insurance group capital standards are accelerating this summer, with significant activity by three oversight bodies — the Federal Reserve Board of Governors (FRB), the National Association of Insurance Commissioners (NAIC) and the International Association of Insurance Supervisors (IAIS).
For insurers falling within more than one of these regimes, navigating these evolving requirements, with their areas of overlap and tension, will require considerable care.
|Federal Reserve-proposed rulemaking
In early June, the FRB issued an advanced notice of proposed rulemaking, with a comment solicitation, on capital standards for two types of insurers and their affiliates:
- Insurers under FRB supervision based on their potential threat to U.S. financial stability (so-called "systemically important financial institutions" or SIFIs); and
- insurers that are holding companies for insured depository institutions (IDIHCs) such as a savings and loan holding company.
The Dodd-Frank Wall Street Reform and Consumer Protection Act empowers the FRB to impose capital standards on insurance SIFIs and IDIHCs while permitting the FRB to "tailor" such standards for the insurance characteristics of their operations. The FRB's June guidance proposes two alternative methodologies for computing such capital requirements.
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.
