WASHINGTON — The insurance industry is asking the Federal Reserve Board of Governors for more time to respond to a request for comments on regulatory capital requirements that the agency would impose on insurers designated as systemically significant and those that operate thrift holding companies.
The request was made July 6 by the American Council of Life Insurers and the American Insurance Association.
The current deadline is Aug. 17. The trade groups are seeking an additional 45 days, or, at a minimum, 30 additional days to comment.
The letter said the time is needed to "ensure careful and thorough analysis and feedback."
The proposal is R-1539.
The letter said that the proposal "is an important precursor" to the Fed's ultimate rulemaking on what the two trade groups said was "a subject of immense importance to our respective member companies."
The letter added that, "The degree of importance in ensuring that the Board receives the highest level of thoughtful, comprehensive and analytical commentary from all interested and affected parties cannot be overstated."
The letter noted that are already a number of regulatory initiatives by federal agencies that insurers are trying to respond to.
These include proposals dealing with executive compensation and capital requires for Systemically Significant Financial Institutions (SIFIs) such as American International Group and Prudential Financial. MetLife is challenging a similar designation in court, and won the first round, a decision in U.S. District Court in Washington, which held that federal regulators were inappropriately seeking to oversee MetLife as a SIFI. The Treasury Department is appealing that decision.
The letter also notes that the International Association of Insurance Supervisors (IAIS) has just issued the second consultation on its insurance capital standard proposal, which requires a detailed response by October.
