The Board's Approach to a Capital Standard for Insurance Holding Companies It is worth sharing some further context for the Board's development of the BBA before previewing its design and key attributes. As outlined in the ANPR, the Board strove to develop a framework that encompassed all material risks across the entire supervised enterprise.
We favored an approach that is as standardized as possible, rather than relying on internal capital models of supervised firms, in order to promote transparency and facilitate comparability across firms. We also aimed to strike an efficient balance between simplicity and risk sensitivity in order to ensure accurate reflection of risks while minimizing regulatory burden.