WASHINGTON, D.C. (PRWEB) April 29, 2015
The American Insurance Association (AIA) submitted testimony for today’s Housing and Insurance Subcommittee hearing entitled, “The Impact of International Regulatory Standards on the Competitiveness of U.S. Insurers.” AIA’s testimony emphasized the importance of securing a workable domestic capital standard tailored for insurers and how that should serve as the basis for informing the U.S. position at the International Association of Insurance Supervisors (IAIS).
A brief statement follows from Leigh Ann Pusey, AIA’s president and CEO.
“Last year’s passage of the ‘Collins fix’ clarified that the Federal Reserve Board (FRB) has flexibility to tailor capital standards for insurance companies. It’s important that capital standards designed for banks not apply to insurance companies, whose risk profile, regulatory structure and business model are different.
“Furthermore, a satisfactory outcome from the FRB’s capital rules process will lay the foundation for a unified approach by the FRB, state regulators and the Federal Insurance Office at the IAIS. A clear, coordinated approach is vital so that any international capital standard preserves a level playing field for U.S. insurers.
“AIA has been, and will remain, actively involved in the debate regarding international regulatory standards and thanks Chairman Leutkemeyer for his leadership in conducting today’s hearing.”