Arlington, VA-The American Consumer Institute (ACI) submitted public comments to the National Association of Insurance Commissioners (NAIC) regarding proposed changes to long-term bond reporting requirements, expressing concern that the framework could serve as a precursor to broader increases in risk-based capital (RBC) requirements. While supporting consumer protection through risk-based regulation, ACI warned that a one-size-fits-all approach to collateralized loan obligations (CLOs) may not accurately reflect varying risk levels and could lead to unjustified capital increases. ACI emphasized that higher capital requirements, if not supported by market data, may raise costs for insurers and ultimately reduce consumer access to life insurance—an essential financial safeguard—particularly as affordability remains a primary barrier for many consumers.
Read ACI’s comments here.
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