Too-Big-to-Fail Insurers Face 10% Higher Capital Requirement
- Unregulated banking activities to have stricter requirements
- Group cites risk of deviating from traditonal insurance
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Global insurers with the greatest ties to the financial system would face an average increase of 10 percent to capital requirements under new standards proposed by a group of regulators.
The increase would be as high as 18.75 percent for unregulated-banking activities by firms deemed to be in a riskier tier, according to documents released Monday in Basel, Switzerland, by the International Association of Insurance Supervisors. For traditional insurance products sold by safer companies, the figure would be 6 percent.