The U.S. life insurance industry has been increasing its exposure to complex assets, either directly as investors or via offshore reinsurance (e.g., Bermuda). In order to address regulatory concerns about such investments and reinsurance arrangements, the NAIC has begun multiple initiatives to improve disclosure and strengthen regulatory requirements, and the Bermuda Monetary Authority is also strengthening its requirements. Hear a summary of these initiatives, and get an update on the latest developments at the NAIC and at the Academy on these topics.
This session will help you:
- Learn what asset types are viewed by U.S. regulators as “complex assets”
- Obtain a high-level understanding of the various regulatory initiatives, how they interrelate, and the Academy’s involvement
- Comprehend the details of how these initiative may affect a U.S. insurer’s asset adequacy testing and risk-based capital
- Understand what summary statistics are available thus far on Actuarial Guideline LIII (AG53) reports that were submitted on or before April 1, 2023
- Contemplate how these initiatives might change the answer for some insurers on their optimal investment and reinsurance strategies