Fed to Propose New Insurance Rule
The Federal Reserve will issue a new draft of proposed insurance capital rules in the “not-too-distant future,” said Fed Vice Chairman for Supervision Randal Quarles. The rule would apply to insurers that fall under Fed oversight because they have banking units. He said the proposed capital requirement would aggregate the capital positions of companies under an insurance holding company, with some adjustments. Under the so-called building block approach, the Fed would impose a minimum capital requirement intended to protect the safety and soundness of a banking unit at an insurer. The standard would largely build on state-based insurance capital rules, said Quarles.