The Holding Company System Amendment Act of 2026 seeks to strengthen the regulatory framework for insurance holding companies in the District of Columbia by updating the group capital calculation process and introducing a liquidity stress test for enhanced macroprudential surveillance. Key provisions include the introduction of new definitions such as "group capital calculation instructions," "lead state," and "NAIC liquidity stress test framework." The bill mandates that the ultimate controlling person of every insurer must submit an annual group capital calculation and liquidity stress test results to the lead state commissioner, ensuring adherence to National Association of Insurance Commissioners (NAIC) standards. Additionally, it outlines exemptions for certain insurance holding company systems and establishes criteria for identifying insurers in hazardous financial conditions, while emphasizing the confidentiality of sensitive information related to these calculations and tests.

The bill also amends existing legislation concerning the sharing and use of information by the NAIC and third-party consultants, specifically changing references from "section 6" to "section 6(k-1)" and clarifying that shared information may include proprietary and trade secret data. It requires written agreements to govern the confidentiality, security, and ownership of shared information, ensuring that the Commissioner retains ownership and that the NAIC or third-party consultants cannot permanently store the information post-analysis. Furthermore, the bill introduces a prohibition against insurers, brokers, or other insurance-related entities making public statements about group capital calculations and liquidity stress test results unless they can substantiate claims of false or misleading information, thereby protecting the integrity of financial disclosures in the insurance sector. The bill will take effect after approval by the Mayor, a congressional review period, and publication in the District of Columbia Register.