FOR IMMEDIATE RELEASE
Federal Reserve Focuses On Global Insurance at NAIC Forum
Tarullo outlines proposed approach for capital requirements
for insurance firms under federal regulation
WASHINGTON, D.C. (May 20, 2016) — Federal Reserve Governor Daniel Tarullo addressed the National Association of Insurance Commissioners' (NAIC) 10th annual International Insurance Forum today and provided insight into the Federal Reserve's approach to developing its capital requirements for insurance groups under its jurisdiction. Tarullo’s keynote address launched the second day of the forum.
“The Federal Reserve and state regulators have complementary roles to play in protecting U.S. policyholders and the financial system at large,” said John M. Huff, NAIC President and Missouri Insurance Director. “We appreciate Governor Tarullo's engagement with the NAIC and look forward to working closely with the Federal Reserve as its supervisory framework is further developed.”
Tarullo stressed the important partnership between the Federal Reserve and state regulators who remain the primary functional regulators for U.S. insurance companies. He highlighted anticipated elements of a forthcoming rulemaking. One option would build upon existing jurisdictional capital frameworks already in place, including state risk-based-capital standards.
“We value the interaction we have had with state insurance commissioners on policy matters and are pleased with the growth of ongoing, regularized cooperation in supervision the firms over which we both have oversight authority,” Tarullo said.
Tarullo's prepared remarks.