2024 SOA ImpACT Conference Virtual - Session 1E: Private Capital and ‘Sidecars’: A New Approach to Risk Transfer 11.13.24 Recording

The past several years have seen a significant increase in the number of insurers and investment managers partnering to establish new reinsurance vehicles. These entities, frequently domiciled in Bermuda and the Cayman Islands, are funded in part or in total by third-party investors. This session will explore the mechanics of these innovative structures and the benefits they offer to all stakeholders - from policyholders to sponsoring insurers to investors. Hear actuaries and investment professionals provide insights on the what and why of private capital in the insurance industry: how it is effectively utilized, why it has taken shape, and how conflicts of interest are appropriately managed within these complex ventures. At the conclusion of the session, attendees will have an understanding of the following: - Market drivers and economics of 'sidecar' reinsurers - How alignment of interest is maintained between policyholders, insurers, asset managers, and third-party investors