WASHINGTON — Robert Gordon, senior vice president, policy development and research at the Property Casualty Insurers Association of America (PCI) issued the following statement in response to the Federal Reserve Board of Governors (Fed) release of an “advance notice of proposed rulemaking” of draft insurance capital rules.
“PCI applauds this major step forward in developing a group capital approach for domestic insurance holding companies subject to the Fed’s supervision. PCI will analyze the proposed rule and looks forward to continuing to work with the Fed. It is important to get this right, as the Fed’s approach to capital standards may set a precedent for the state-based U.S. regulatory system and may also impact the international deliberations.”
Gordon further noted that “Congress has been very engaged in expressing concerns about adoption of international insurance standards and the need to appropriately sequence the development of domestic capital standards that are pro-consumer and pro-competition. PCI will continue to engage with members of Congress who are developing legislation also addressing some of these issues.”