WASHINGTON - The Property Casualty Insurers Association of America (PCI) applauds the House of Representatives for passing S. 2270, The Insurance Capital Standards Clarification Act of 2014. This legislation will allow the Federal Reserve Board flexibility not to impose bank capital standards on insurers it regulates. The Senate previously passed the bill on June 3, 2014.
“PCI applauds the bipartisan leadership of Chairman Hensarling, Subcommittee Chairman Neugebauer, Ranking Member Waters, Ranking Member Capuano, and the bill sponsors – Representatives Gary Miller and Carolyn McCarthy -- for their leadership in passing The Insurance Capital Standards Clarification Act of 2014,” said Nat Wienecke, PCI’s senior vice president, federal government relations. “PCI has long been advocating domestically and internationally against imposition of inappropriate bank-centric capital requirements on insurers. PCI is pleased that this legislation takes into account the unique nature of insurers’ risks, which are fundamentally different from those for banking, and clarifies the Federal Reserve Board’s authority to tailor capital standards to insurance companies under its supervision. This legislation will continue to allow strong prudential supervision of insurance companies while preventing unnecessary harm in the insurance marketplace to the detriment of consumers.”