While larger insurers are waiting to hear whether they will be subject to an extra layer of oversight – as a result of being named a systemically important financial institution (SIFI) by the Financial Stability Oversight Council – Fitch reassures smaller domestic insurers with larger foreign parents, saying it is doubtful they would be considered SIFIs.
“Ultimately, we think it is unlikely that the Federal Reserve Board (FRB) would want to commit resources to overseeing these foreign-owned insurance companies,” Fitch said. “Further, the oversight of these companies could complicate cross-border regulation of global insurance organizations including U.S. companies with overseas operations.”
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