The Group Capital Calculation (E) Working Group is exposing the following items for comment through May 10, 2021.  Please submit comments to Lou Felice.

• Attachment A is edited Group Capital Calculation (GCC) instructions incorporating prior comments. Further clarification requested in Appendix 1 (Excess Relative Ratio Scalars) will be distributed later. Additional instructions regarding potential stress scenarios have been incorporated into Attachment B for now. The Table of Contents for the GCC Instructions will be updated later to add the new tabs for Stress Inputs and Stress Summary, and some addtional brief instructions will be added as well.
• Attachment B is the stress testing proposal with some edits and additional instructions marked.  If adopted it is proposed that this could be added as a second Appendix to the GCC Instructions.
• Attachment C is the GCC Template which has been slightly updated to address consistencies with the edited instructions and now includes new tabs for Stress Inputs and Stress Summary.

The Working Group is exposing the following items for comment through Tuesday May 25, 2021.  Please submit comments to Lou Felice at lfelice@naic.org

• 2020 GCC Instructions - Revised Stress Scenario Language Only 5/17/21
• 2021 GCC Template 4/29/21 - Stress Scenario Parts for Comment

Adopted Group Capital Calculation (GCC) instructions with revised language related to the addition of the stress scenario highlighted on pages 44, 47, 52 and 53 . Also highlighted is additional language at the end of Appendix 1 (page 52) related to the source of the Excess Relative Ratio scalars.  The remainder of the instructions have been adopted by the Group Capital Calculation (E) Working Group.  Please limit your comments to only the highlighted language.

The GCC Template in final form for adoption with the exception of the parts related to the Stress Scenario (placement of the text box for the narrative in the “Input 6” tab and the addition of the “Stress Inputs” tab and “Stress Summary” tab).  Please focus your comments on these areas.

With the exception of the areas exposed for further comment, the remainder of the instructions and template are final for the 2021 GCC Trail Implementation. The materials have also been posted to the “2021 GCC Trial Implementation” tab on the GCCWG webpage and will be updated later based on final disposition of the stress scenario additions.

A drafting group made of a small number of regulators and interested parties from the Group Capital Calculation (E) Working Group were asked to collectively work together to develop draft guidance for how to incorporate the GCC into the regulatory process with respect to the Financial Analysis Handbook. In the end, the regulators and NAIC staff developed such guidance, then high-level findings and recommendations of a small group of Interested Parties was provided to, and considered by, the drafting group, who modified the draft guidance to try and address the recommendations.

• Regulatory Guidance for GCC 5/18/21
• Analyst Reference Guidance for GCC 5/18/21

Please direct all comments to Dan Daveline (ddaveline@naic.org) by July 31.