Non-Traditional Risks
Non-traditional risks pose the greatest threat
- Top three were:
- customer loyalty
- competitive threats
- operational failure
2001 12 - NAIC - Risk Management in the Insurance Industry -
Session 7a - 51p
- 2008 - SOA - Economic Capital for Life Insurance Companies, Society of Actuaries - 63p
- 19. Large life insurance groups have expanded non-traditional insurance business (separate account) and provide complex guarantees.
2015 04 - IMF - IMF Country Report No. 15/90 - UNITED STATES - FSAP - DETAILED ASSESSMENT OF OBSERVANCE ON INSURANCE CORE PRINCIPLES - [123p
- However, a second observation is that the liability side of the balance sheets of many large insurance companies look quite different from this traditional picture.
- Many life insurers, for example, now offer wealth and retirement products with account values that can be withdrawn at the discretion of the policyholder, sometimes with little or no surrender penalty.
- Although these products are generally considered medium to long-term liabilities, the option to surrender or withdraw funds creates the potential for increased claims that could strain the liquidity of the firm. (p12)
2015 0928 - FRB - Capital Regulation Across Financial Intermediaries, Remarks by Daniel K. Tarullo, Member Board of Governors of the Federal Reserve System - 17p