American Property Casualty Insurance Association
  • Staff Contact: Eileen Gilligan     
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Contact:

Eileen Gilligan

Phone:

202-639-0497

Email:

Eileen.Gilligan@pciaa.net

 

 

FOR RELEASE ON RECEIPT

September 15, 2014

PCI Statement on the House Insurance Capital Standards Clarification Act

 

WASHINGTON – Nat Wienecke, senior vice president, federal government relations at the Property Casualty Insurers Association of America (PCI) issued the following statement:

“PCI strongly supports appropriate capital requirements for property-casualty (home, auto, and business) insurers. However, any insurance capital standards must take into account the unique nature of property-casualty insurers’ risks, which are fundamentally different than those for banking,” said Wienecke. “The Dodd-Frank Act has been interpreted by the Federal Reserve Board to require them to impose banking capital standards on insurers that they regulate, despite the disconnect between banking and insurance risks. While the Federal Reserve Board has acted prudently in delaying imposition of bank capital standards on insurers until Congress can clarify the situation, the potential burdens if not addressed would harm consumers and job growth. Legislation authored by Representatives Andy Barr and Gary Miller that is being considered by the House of Representatives, would clarify the Federal Reserve Board’s authority to tailor capital standards to insurance companies under its supervision. This legislation would continue to allow strong prudential supervision of insurance companies while preventing unnecessary harm in the insurance marketplace. PCI supports the Insurance Capital Standards Clarification Act and urges its passage.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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