WASHINGTON, D.C. – Last night, the U.S. House of Representative unanimously passed legislation introduced by U.S. Sens. Susan Collins (R-ME), Sherrod Brown (D-OH), and Mike Johanns (R-NE) clarifying a provision in the 2010 Dodd-Frank law to streamline regulations for insurers. The bill passed the Senate in June and now heads to the President’s desk for signature. It provides the Federal Reserve with the authority to take into account the significant distinctions between banking and insurance when setting capital standards.
“This commonsense fix ensures that traditional life, property, and casualty insurance are not held to the same capital standards as banks,” Brown said. “While strong capital standards are crucial, they must make sense. Applying bank standards to insurers could make the financial system riskier, not safer. I thank Sens. Collins and Johanns for their work on this important legislation and I urge President Obama to sign this bill immediately.”
Specifically, the Insurance Capital Standards Clarification Act of 2014 would:
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