NAIC Adopts Group Capital Calculation

GCC approved

WASHINGTON (Dec. 9, 2020) – Members of the National Association of Insurance Commissioners (NAIC) adopted the NAIC’s Group Capital Calculation (GCC), today, along with model legislative language designed to enable the GCC once adopted by the state legislatures.

The GCC was developed by the NAIC’s Group Capital Calculation (E) Working Group, in a project that began in 2015, and provides U.S. solvency regulators with an additional analytical tool for conducting group-wide supervision. Key tangible benefits include:

  • A tool that quantifies risk across the insurance group coupled with transparency into how capital is allocated.
  • Key financial information on the insurance group that assists regulators in holistically understanding the financial condition of non-insurance entities.
  • Information that assists in understanding whether and to what degree insurance companies may be supporting the operations of non-insurance entities.
  • A new tool which can be used to help resolve any concerns to ensure that policyholders of the insurers in the group will be protected.

“The GCC provides yet another analytical tool added to state insurance regulators’ toolbox on group supervision since the 2008 Financial Crisis, and will complement the Form F Enterprise Risk Report, Own Risk and Solvency Assessment (ORSA) reporting, and the Corporate Governance Annual Disclosure,” commented David Altmaier, Florida Insurance Commissioner and Chair of NAIC’s Group Capital Calculation Working Group. “All of these tools have been developed in a way that is cost effective and appropriate for the U.S. system, with the GCC being less costly and burdensome than other ‘consolidated approaches,’ and in a way that respects other jurisdictions’ existing capital regimes.”

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit

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