WASHINGTON, D.C.– The American Council of Life Insurers (ACLI) raised concerns in congressional testimony today over Standard & Poor’s (S&P) ratings agency’s recent proposal to its insurer capital adequacy methodology.

S&P temporarily withdrew its proposal on May 9. However, S&P reserved the right to return to it in its rating process.  

ACLI Senior Vice President, Policy Development, Mariana Gomez-Vock testified before the House Financial Services Committee’s Investor Protection, Entrepreneurship and Capital Markets Subcommittee that S&P’s “notching” proposal would have been detrimental to consumers and the American economy.

“Individuals and families all across this country are seeking certainty. And we are in the business of providing certainty,” Gomez-Vock testified. She highlighted the certainty life insurers have provided through the pandemic.

“We were there when the worst came for too many. Benefits paid in 2020 were the highest in history. The industry paid over $90 billion in life insurance benefits,” she testified.

At the same time, life insurers invest in the economy -- $572 million every day. That makes life insurers one of the largest sources of investment capital in the nation.

“A change by the world’s largest rating agency will have an impact. And these changes should be transparent and supported by data,” she testified.

ACLI’s oral testimony can be found here.

ACLI’s submitted testimony can be found here.

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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 94 percent of industry assets in the United States.