World Regulator Group May Let U.S. Have Its Own Capital Standards
November 20, 2019 by Allison Bell
An international insurance regulator group today adopted a capital standards approach that horrifies U.S. life insurers — but it said it might let the United States and other countries use an alternative promoted by the U.S. Chamber of Commerce.
The International Association of Insurance Supervisors (IAIS) approved the Insurance Capital Standard Version 2.0 standard at the IAIS annual meeting in Abu Dhabi, along with two other major sets of guidelines for regulating multinational insurers.
One is the Common Framework, or ComFrame, which addresses how regulators should work together to oversee insurers that do business in more than one country.
The other is a Holistic Framework for dealing with the possibility that problems at a specific insurer could crash the world financial system.