ACLI President & CEO Dirk Kempthorne issued the following statement today in response to the Federal Reserve Board’s Advanced Notice of Proposed Rulemaking on capital standards:

Washington, D.C. (June 3, 2016) – “We are encouraged by the Federal Reserve Board’s Advanced Notice of Proposed Rulemaking (ANPR) Regarding Capital Requirements for Supervised Institutions Significantly Engaged in Insurance Activities.

“The Federal Reserve Board’s insurance-centric approach to its oversight of the life insurance industry is appropriate.

“The ANPR is rooted in our nation’s regulatory system and builds on America’s strong, state-based system of regulation. It recognizes that the business and associated risks of insurers are very different from those of banks and other financial firms, and that rules governing insurance companies’ capital must be specially tailored for the industry.

“We have questions about an approach that would put in place two distinctly different capital regimes for insurance entities overseen by the Board. We will be examining the two proposals very closely.”