The National Association of Insurance Commissioners (NAIC) has developed the Group Capital Calculation (GCC) for U.S.-based insurance groups since late 2015. GCC is designed to provide a coherent analytical framework to show a panoramic, transparent view of the interconnectedness, business activities and underlying capital support for an insurance group. The last field testing was completed in May 2019. The final proposal was adopted in late 2020. The Federal Reserve Board (FSB) also recently updated the group capital standard to an aggregation method, which is similar to the NAIC GCC. The Insurance Capital Standard (ICS) is under the development by International Association of Insurance Supervisors (IAIS) for Internationally Active Insurance Groups (IAIGs). It has entered the five-monitoring period from January 2020 to monitor the performance of the ICS V2.0 and the IAIS will perform a comparability assessment of the ICS V2.0 with the Aggregation Method (e.g. NAIC GCC) during this period.
The session will provide the overview of NAIC GCC framework in the relation to other regulatory measures (e.g. US Federal Reserve Board (FRB) group capital standard, ORSA, and IAIS's ICS V2.0) in term of technical and non-technical aspects.
At the conclusion of the session, attendees will be able to:
• Have a broad understanding of the NAIC GCC framework
• Compare the NAIC GCC with other regulatory regimes
• Understand current global group capital standard issues
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