Insurer Groups Ask Fed to Ease Capital Standards Comment Deadline

The Fed’s RBC system “adjusts and aggregates existing legal entity capital requirements to determine an enterprise-wide capital requirement, together with a risk-based capital requirement excluding insurance activities,” according to a summary of a draft regulation that appeared in the Federal Register Oct. 24.

The Fed believes that a major alternative, which has been developed by the International Association of Insurance Supervisors, would penalize issuers of annuities, long-term care insurance and other products that create long-term benefits obligations.

The Fed approach “would appropriately reflect, rather than unduly penalize, long-duration insurance liabilities in the United States,” Fed officials say in the introduction to the Fed’s draft regulation.

Related

A link to the request for comments is available here.

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