Risks – Page 3 – [BonkNote]

Shadow Shadow Banking Shadow Insurance Recently I have noticed other disturbing signs, indicated by an increase in formation of overseas domiciled subsidiary or “Shadow Insurers” designed for use in the U.S. surplus markets. These “Shadows” of prominent U.S. insurers are popping up all over the world and are beginning to mark the escape of U.S.…

Guaranty Funds NAIC – Financial Condition Committee – (E) — [BonkNote] Guaranty Fund Issues Working Group – (E) – NAIC — [BonkNote] NCIGF – National Conference of Insurance Guaranty Funds – ncigf.org/ — [BonkNote] NOLHGA – National Organization of Life and Health Insurance Guaranty Associations — [BonkNote] (p515) – The working group identified several issues relevant…

GICs – Guaranteed Investment Contracts FABN – Funding Agreement-Backed Note GICS – AIG – FCIC GIA’s Guaranteed Interest Contracts Stable Value Unallocated Annuity Contracts 412(i) 1991 0903 – NYT – Worry Over Retirement Funds, By Eric N. Berg – [link] GIC’s, Executive Life, Mutual Benefit Also, you had a lot of different interests in Executive Life.…

Policyholder Options Many insurance contracts offer the policyowner options regarding premium payment, benefit patterns, and policy loans. This flexibility means that many different patterns of future cash flow could arise under the contract. (p6) 2002 09 – AAA – Fair Valuation of Insurance Liabilities: Principles and Method, American Academy of Actuaries – 48p The ACLI’s Dolan…

Liquidity vs Solvency Liquidity is a separate problem from solvency, but it can be equally serious. 1992 01 – SOA – The Actuary – A Possible Source of Low-cost Liquidity, by Irwin T. Vanderhoof, Society of Actuaries (p3) – 20p 2009 0305 – GOV (House) – Perspectives on Systemic Risk [PDF-254p, VIDEO-youtube-Part 1of 2 – Bad Copies] – <mp3,…

Holding Company Bank Holding Company Act of 1956 MHC – Mutual Holding Company Orderly Resolution Authority SLHC – Savings and Loan Holding Company 2007 0611 – OTS – Office of Thrift Supervison Holding Company Report Of Examination of AIG – 52p 2010 0318 – GOV (House) – Insurance Holding Company Supervision – Paul Kanjorski (D-PA) Dots –…

Run Run – Index Life insurers, whose liabilities are generally more liquid than their assets, are particularly vulnerable to runs by policyholders. (page x) 1994 04 – CBO – The Economic Impact of a Solvency Crisis in the Insurance Industry, Congressional Budget Office – 80p A major problem that must be overcome with such monitoring…

Regulatory Forbearance 2021 – AP – Regulatory Forbearance in the U.S. Insurance Industry: The Effects of Removing Capital Requirements for an Asset Class, by Bo Becker (Stockholm School of Economics, CEPR, and ECGI), Marcus M. Opp (Stockholm School of Economics and CEPR), Farzad Saidi University of Bonn and CEPR), The Review of Financial Studies, Volume…

NTNI – Nontraditional and Non-insurance Non-Traditional “Non-traditional Non-insurance Activities and Products” Non-traditional Non-insurance Activities and Products Public Consultation – Consultation: comments due by 25 January 2016 admin.iaisweb.org/index.cfm?event=showPage&nodeId=57972&edit=true#_ftnref1 IAIS 1. MetLife does not engage in non-traditional non-insurance activities that create any appreciable systemic risk. 2014 0730 – Letter – Benjamin Lawsky (New York Superintendent of Financial Services)…

Lapse Risk Lapse Mass Lapse Risks The third is the lapse risk, which is defined as the risk that the policy will lapse before the acquisition costs are recovered. — William M. Frasier 1996 – SOA – Accounting for Reinsurance Agreements, Society of Actuaries – 22p In terms of some additional risks that you assume,…