b'Engaging TEAM USAWe keep the three key domestic regulatory agencies connected to our industry informed about our industrys positions, progress and performance. And we encourage them to work together when advocating before Congress and international bodies. ACLI CEO Susan Neely moderated a discussion with members of Team USA on the role of insurance investments in the U.S. economy. We support an InternationalA Win for the United Statesand our IndustryInsurance Capital StandardOur engagement with Team USAthe NAIC, the Fed, and Treasurys (ICS) that doesnt interfereFIOhas never been more collaborative, as evidenced by our with industry competitivenessexperience in 2019. Weve worked diligently to engage on critical or limit the availability ofissues as they evolveincluding the International Insurance Capital long duration risk protectionStandard (ICS) and the NAICs group capital calculation (GCC). products in the United States,During an IAIS meeting in Abu Dhabi, Team USA negotiated an and that recognizes our state-international agreement that was an important development for based regulatory system.the United States and our industry. Importantly, it was broadly consistent with the principles we supporta state-based regulatory system. And it tells us that our voice is being heard. Dialogue with the NAICCommunicating with the Federal ReserveWe continue to monitor the influence of theAs a result of the ICS Clarification Act of 2014, the ICS on the NAICs group capital calculation.Fed has the flexibility to apply insurance-based capital A key question will be how far regulators willstandards to our member companies. We provided expand their oversight into an insurers entirerecommendations as they issue proposed rulemaking on financial group. We will continue our significantgroup capital requirements, and kept them informed of engagement on this issue.developments at the state and international level.ACLI2019 ANNUAL REVIEW 15'