On June 20-21, we attended the 2019 IFRS conference in London to stay informed on important regulatory issues affecting the insurance industry today.
Global capital requirements and systemic risk within the insurance industry dominated the conversation at this year’s NAIC International Insurance Forum.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
Since the financial crisis, for a relatively liquid investment CLOs consistently have had the highest spreads net of capital costs for US life insurers.
A preliminary analysis
Summary notes from the NAIC Fall 2019 National Meeting.
Capital framework discussion from the NAIC 2019 Fall National Meeting.
Capital framework discussion from the NAIC 2019 Summer National Meeting.
NAIC 2019 Summer National Meeting Key takeaways