Federal Reserve Previews “Building Block Approach” to Insurer Capital Standards

    View Authors January 2019

    Despite the few number of insurers regulated by the Federal Reserve Board (the Fed), all insurers should take note of Board Vice Chair Randal K. Quarles’s speech to the American Council of Life Insurers (ACLI) last week. On January 9, 2019, Mr. Quarles “previewed” the Fed’s plans to propose group capital standards for the insurers it regulates. Mr. Quarles noted that the Fed’s standards will be unique and, while they will build on current US insurance capital standards for insurance operations within the group, they will not be identical to any existing capital standards or to other pending capital standards proposals.