The Holding Company System Amendment Act of 2025 seeks to amend the Holding Company System Act of 1993 by enhancing the regulatory framework for insurance companies in the District of Columbia. Key updates include the introduction of new definitions for group capital calculations and liquidity stress tests, as well as the requirement for insurers in hazardous financial conditions to secure a deposit or bond. The bill also grants the Commissioner increased authority over third parties when an insurer is in a precarious financial state or under receivership, thereby bolstering the Department of Insurance, Securities and Banking's (DISB) ability to ensure solvency and consumer protection.

Additionally, the bill emphasizes the confidentiality of group capital calculations and liquidity stress test results, particularly regarding information received from the Federal Reserve Board and non-U.S. supervisors. It allows for the sharing of confidential information with regulatory agencies and law enforcement, contingent upon written agreements to maintain confidentiality. The legislation also specifies that ownership of shared information remains with the Commissioner and prohibits the National Association of Insurance Commissioners (NAIC) and third-party consultants from storing this information in a permanent database. Overall, these amendments aim to strengthen the oversight and management of sensitive financial information within the insurance sector.