- Asset Liquidation
- Lapse Risk
- Life Liquidity Risk Working Group – NAIC
- 2000-1, DeAngelo (NJ)
- Liquidity Assessment Subgroup - NAIC
- 2019-1, NAIC Proceedings
- Life Insurance and Annuities Replacement Model Regulation (MDL-613) - PDF
- Replacement Issues Working Group - NAIC
- In contrast, many of the investment-oriented products marketed in the last decade have shorter duration and require greater liquidity than was needed in earlier ...
- Brian Bayerle (American Council of Life Insurers—ACLI) said pledging collateral to the FHLB could actually increase a company’s liquidity, as the company can draw on liquid assets in the event of needing additional liquidity.
- He said this is especially true if the more illiquid assets are pledged.
- Mr. Ostlund said he is not convinced it is a good idea for an insurance company to be doing anything in that regard, as it might be desperation.
- Michael Lovendusky (ACLI) said that could have been the situation in 2008.
- Paul Graham (ACLI) said the asset the company gets as a result of the transaction is cash and what that does is take care of situations where a market may make it difficult to sell existing assets at book or better.
- He said it allows companies to hold assets through a market cycle without taking a capital loss in the event that cash is needed to pay benefits.
2017 09 28 - NAIC - Market Conduct Annual Statement Blanks (D) Working Group - Conference Call
1. Heard report by ACLI concerning life insurance cash flow and liquidity problems caused by recent financial instability. The report noted:
- (a) High interest rates caused cash outflow.
- (b) Forward investment commitments have been a source of cash drain while anticipated cash inflows have not
- (c) Few companies have been forced to realize capital losses.
- (d) Life insurance claims have been met.
- (e) ACLI is developing mechanisms to deal with similar problems. (p88)
1980-2, NAIC Proceedings