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HB 1172

Holding Company Act; amend to include group capital calculation and liquidity stress test requirements to.

2025 Regular Session Introduced by Jerry Turner

HB 1172 requires Mississippi insurance holding companies to perform group capital calculations and liquidity stress tests to strengthen financial oversight and consumer protection.

Died In Committee
#insurance
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Bill Summary · HB 1172

Legislative bill overview

HB 1172 would amend Mississippi's Holding Company Act to require insurance holding companies to conduct group capital calculations and liquidity stress tests. These requirements would establish standardized methods for measuring the financial adequacy and resilience of insurance company parent organizations during economic stress scenarios.

Why is this important

Insurance holding companies control multiple insurance subsidiaries and manage significant consumer assets. Requiring capital and liquidity stress testing helps regulators assess whether parent companies can support their insurance operations during financial crises, protecting policyholders and promoting financial system stability.

Potential points of contention

  • Regulatory burden: Compliance costs for smaller holding companies may be substantial, potentially affecting competitiveness and operational flexibility
  • Standardization concerns: Disagreement over what stress test scenarios are realistic or appropriately calibrated to Mississippi's insurance market
  • Frequency and reporting: Debate over how often tests must be conducted and what data must be disclosed to regulators versus kept confidential

Compiled from official sources — confirm details with the bill’s official record.

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