Key facts
- NAIC proposal targets multi-collateral structured credit products.
- Insurers argue the proposal would remove favorable capital treatment for these assets.
The National Association of Insurance Commissioners (NAIC) has put forth a proposal that could alter the capital treatment for certain structured credit products held by US life insurers. The proposal specifically targets multi-collateral structured credit products with heterogeneous underlying assets. Insurers have voiced concerns that this change would remove favorable capital treatment, which they view as a potential indicator of broader regulatory scrutiny on their investment portfolios.