On August 24, 2015, the Financial Services Roundtable – a prominent US financial services industry group – released a letter to US Federal Reserve Board governor Daniel Tarullo pressing the Board, in its capacity as a member of the Financial Stability Board and the IAIS, to oppose a plan by the International Association of Insurance Supervisors to create capital standards for systemically important insurance companies before the end of 2015. Among other things, the FSR letter notes that the IAIS plan to adopt Higher Loss Absorbency standards for certain insurance companies is premature, lacks transparency and should be delayed until revisions to other portions of IAIS's rules are completed. In addition, the letter notes that, just as international banking regulators conducted an economic analysis on the effect of new capital rules for banks prior to the implementation of such rules, so the IAIS should delay adopting a final HLA standard until it completes a comprehensive economic analysis on the effect of placing a capital surcharge on "globally significant" insurance companies.
The press release is available at: http://fsroundtable.org/fsr-sends-letter-to-gov-tarullo-urging-significant-changes-to-flawed-insurer-proposal/.
The text of the FSR letter is available at: http://bit.ly/1U9h7bO.
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