Two-Tier Insurance Company Standards Coming Soon From Feds

The Federal Reserve is going to be issuing a new requirements structure for firms labeled “too big to fail”. The Federal Reserve has now announced that a two-tier insurance company standards system will soon be created in addition to special liquidity requirements that will be meant for providers that have been called “too big to fail.” These changes are meant to help to mitigate risks to financial stability, said Fed Governor Daniel Tarullo. Tarullo made the announcement as a part of his speech to the National Association of Insurance Commissioners (NAIC) on Friday.