Traditional insurers likely won’t have to raise fresh capital to meet new capital requirements for globally systemically important insurers (G-SIIs), Fitch Ratings says in a new report.

On Oct. 23, global insurance regulators set the basic capital requirements (BCR) for so-called G-SIIs. Fitch says this is the first step in a process to develop global capital standards for G-SIIs. Starting in 2019, these firms will have to hold capital amounting to the BCR, plus a higher-loss-absorption (HLA) requirement. “The HLA will not be finalised until late 2015, so the final overall impact is uncertain,” Fitch says.

For now, Fitch says that the BCR has been set at a relatively low level, which means that firms with traditional business models “may face little increase in total capital requirements when the full regime is implemented.” Fitch reports that the BCR is equivalent to 75% of the average capital requirement for G-SIIs under existing rules.

“We expect the HLA to focus more on risk than just size, potentially imposing tougher standards on things like credit default protection, variable annuities and newer product lines with shorter pricing and performance track records,” it says. As a result, firms with non-traditional operations could see a much larger change in their requirements, Fitch suggests.

In any case, Fitch doesn’t expect most insurers to have to raise fresh capital, “due to the long time they will have to prepare and their strong existing capital levels, which are substantially above current minimum requirements.”