Federal Reserve

Statement from the NAIC: Fed Releases Proposal for Group Capital Standard

The NAIC applauds work by the Federal Reserve Board (Fed) in developing its group capital standard for U.S. based insurance led groups that include a depository bank within the group. The rule highlights the U.S’s commitment to an approach for evaluating capital in a manner that works for our markets and consumers. Upon initial review, their standard is consistent with the NAIC's Group Capital Calculation (GCC), in that it builds upon the regulatory capital rules of subsidiaries' functional regulators. The NAIC’s own group capital calculation is currently being field-tested. While the NAIC is still reviewing the Fed's proposal, we are encouraged that the Fed’s approach appears to be in harmony with the U.S. state-based system of regulation, due in part to coordination during development.

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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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