Regulators Could Help Life Insurers Buy More Stock
August 21, 2019 by Allison Bell
State insurance regulators are thinking about the idea of making it easier for life insurance companies invest in stock.
A team at the National Association of Insurance Commissioners, the Life Risk-Based Capital Working Group, is asking for public comments on a stock-investment proposal from Allstate Corp.’s life insurance business.
Allstate told the working group that, today, regulators impose a big penalty on stock holdings when calculating a life insurer’s risk-based capital (RBC) ratio.
Allstate has asked regulators to cut the size of the stock investment penalty for assets used to support products that are designed to lock in the customer’s money for many years, such as payout annuities.