Analysis

What are the options for a US insurance group capital standard? 

Read this Closer Look for an overview of proposed insurance capital standards, three approaches to the standards, and important considerations for each.

What are the options for a US insurance group capital standard?

US state insurance regulators may be expected to adopt group capital standards for large US-based internationally active insurance groups.

While the standards strive to promote financial stability and drive the importance of enhancing group supervision, US stakeholders have been hesitant to adopt a seemingly bank-centric approach to insurance regulation.

However, a directive by the G20s Financial Stability Board to the International Association of Insurance Supervisors to begin work on capital standards broke the stalemate. The insurance industry may wish to analyze different options that the standards may take and join the discussion now to help influence the outcome of critical areas.

Read our Closer Look to understand the three approaches–including Group RBC, aggregated entity, and cash flow stress testing–to the standards and important considerations for each.

Download this Closer Look

More from the Closer Look series

Did you find this useful?