WASHINGTON – The American Council of Life Insurers (ACLI) joined with leading financial services groups in support of the Adjustable Interest Rate (LIBOR) Act of 2021, H.R. 4616, legislation to help ensure a smooth transition away from the London Inter-Bank Offered Rate (LIBOR).

LIBOR is the current benchmark index for determining interest rates for mortgages, student loans, and other financial instruments. One common life insurer use of LIBOR has been in derivatives, which help companies maintain stable capital investments. This enables life insurers to offer consumers a wide variety of affordable financial security products.

Introduced by Rep. Brad Sherman (D-CA), H.R. 4616 calls for the Secured Overnight Financing Rate (SOFR) to replace LIBOR for those financial contracts that had not anticipated LIBOR’s June 2023 end. Issues related to the transition were examined in April by the House Financial Services Committee.

The House Financial Services Committee is slated to vote today on the bill.

Find a copy of the group’s letter on the legislation here.

The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 280 member companies represent 95 percent of industry assets in the United States.

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