NAMIC: Group Capital Standards Comparability Finding ‘Promotes Strong, Effective, and Efficient’ Insurance Regulation

INDIANAPOLIS (November 14, 2024) – The National Association of Mutual Insurance Companies welcomed the International Association of Insurance Supervisors assessing the U.S. Aggregation Method for calculating group capital adequacy as comparable with the Insurance Capital Standard.

Erin Collins, NAMIC senior vice president of State and Policy Affairs, made the following statement:

“The IAIS comparability finding promotes strong, effective, and efficient regulation of insurance. It recognizes that every country has a unique regulatory system with distinct features that influence the solvency of companies doing business there. The level of supervision of insurers across the globe is sound, and while the means are different, regulators have found effective ways to oversee their insurance industries taking their own political and rule-making environments into account.

“This step prevents adding unnecessary requirements that would result in higher costs for policyholders by using a principle-based, outcomes-focused approach flexible enough to accommodate different regulatory systems. The determination validates that one-size-fits-all standards are unnecessary to effectively protect solvency. It upholds that diverse, successful approaches to regulation consider local capital requirements and differences in other regulatory requirements and supervisory tools.

“NAMIC will continue working with regulators at every level to create healthy, competitive insurance markets with regulatory approaches that address their specific needs.”

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NAMIC membership reflects many of the country’s largest national insurers as well as regional and local mutual insurance companies on main streets across America. NAMIC members write $391 billion in annual premiums and account for 68 percent of homeowners, 56 percent of the automobile, and 31 percent of the business insurance markets.