Fed proposes change to capital reserve rules for insurance companies
June 3, 2016 by Kristen Beckman and Jesse Hamilton
The Federal Reserve Board of Governors today released details of a proposal that would affect insurance company regulatory capital frameworks. The proposal includes two approaches to regulatory capital requirements for supervised insurance institutions that would fulfill compliance needs under the Dodd-Frank Act.
The advance notice of proposed rulemaking (ANPR) applies to nonbank financial companies significantly engaged in insurance activities that are supervised by the board, or insurance companies such as AIG and Prudential, which are deemed systemically important financial institutions (SIFI), bank holding companies (BHC), and savings and loan holding companies (SLHC) significantly engaged in insurance activities. Companies with 25 percent or more of total consolidated assets in insurance underwriting subsidiaries other than assets associated with insurance underwriting for credit risk would be included.
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