NAIC firm on no change to US life insurers capital requirements.

(From InsuranceNewslink.com)

Insurance regulators, working together through the National Association of Insurance Commissioners (NAIC), have denied a request from the life insurance industry to relax capital and surplus requirements. This action was taken by the NAIC Executive Committee during a meeting held via teleconference.

"So far the insurance industry is in much better condition than most of the rest of the financial services sector because of strong state solvency regulations," said NAIC president and New Hampshire Insurance Commissioner Roger Sevigny. "Simply put, the industry has not made a credible case for why we need to make changes on an emergency basis, and why those changes should be limited to the specific proposals made by the industry."

During a four-hour public hearing held Jan. 27, regulators took comments from industry representatives, consumer groups and other interested parties on the industry's nine proposals.

Following the hearing, members of the NAIC Capital and Surplus Working Group recommended the rejection of three proposals, and the approval of variations of six other proposals impacting reserving ...