6.
Summary and preliminary comparison of any existing or proposed federal regulation that is intended to address the activities to be regulated by the rule:The office is unaware of any proposed or existing federal laws or regulations that are intended to address the activities to be regulated by the proposed rule changes.
7.
Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):The rule is unlikely to have a significant economic impact on small businesses because it is not anticipated that this rule change will have any effect on insurers that would meet the definition of small business.
In addition, the proposed rule change is expected to have no economic impact with regard to regulatory costs as the proposed rule change only changes the type of investments that may be counted toward compulsory and security surplus requirements. It does not affect the required amount of that surplus or add additional regulatory requirements. The proposed changes regarding derivative investments should have little or no economic impact and cause little or no increase in regulatory costs.
The rule will allow insurers to invest a larger percentage of their investments internationally which could possibly lessen the amount of investments in the United States and Wisconsin. This could have a possible indirect economic impact on the state but it is difficult to predict whether a significant shift toward foreign investments would occur or to what degree. In any event, a significant or even moderate economic impact is not anticipated. Also, allowing a larger percentage of assets to be in held in foreign investments, which arguably carry more risk than other permitted investments, could increase the likelihood of insurer insolvency.
____ yes
__X_ no
local/statewide economic impact (choose one)
X minimal or none (< or = $50,000)
moderate ($50,000--$20,000,000)
significant (>$20,000,000)
