Press Release

October 06, 2023 Federal Reserve Board finalizes a rule establishing capital requirements for insurers supervised by the Board For release at 3:15 p.m. EDT Share The Federal Reserve Board on Friday finalized a rule establishing capital requirements for insurers supervised by the Board. The final rule is substantially similar to the proposal issued in September 2019. The final rule includes a framework, known as the Building Block Approach, that builds on existing state-based insurance requirements, accounts for risks that are specific to the business of insurance, and is different from the calculations used for bank capital requirements. Under the Building Block Approach, a Board-supervised insurer is required to aggregate its top-tier company's capital requirements with its subsidiaries' requirements to determine its enterprise-wide requirement. All Board-supervised insurers currently hold enough capital to comply with this rule, which takes effect as of January 1, 2024. For media inquiries, please email [email protected] or call 202-452-2955. Board memo (PDF) Delegation Order (PDF) Federal Register notice: Risk-Based Capital Requirements for Depository Institution Holding Companies Significantly Engaged in Insurance Activities Statement by Governor Michelle W. Bowman Related Content Board Votes

Federal Reserve (2023, October 5). Press Release. Press Releases, Federal Reserve. https://whenthefedspeaks.com/doc/press_release_20231006_federal_reserve_board_finalizes_a_rule

@misc{wtfs_press_release_20231006_federal_reserve_board_finalizes_a_rule,
  author = {Federal Reserve},
  title = {Press Release},
  year = {2023},
  month = {Oct},
  howpublished = {Press Releases, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/press_release_20231006_federal_reserve_board_finalizes_a_rule},
  note = {Retrieved via When the Fed Speaks corpus}
}