2025 SOA ImpACT Conference Virtual:Session 4E: Cutting-edge Capital Strategy-12.04.25 Recording

Experts weigh in on sharing the risk and expense of RBC capital charges and other capital issues.. Introduction: RBC capital requirements and other new business strain items have a big impact on an insurer’s balance sheet. Can reinsurance be used as an economic tool to alleviate capital strain? We’ll hear from the experts about emerging reinsurance solutions to manage capital.Summary: Reinsurance can be used in unique ways to address capital strain requirements. Our panel of experts will look at both innovative and tried-and-true ways that a variety of capital issues can be managed via reinsurance. For instance, C-4, one of the largest components of total RBC capital requirements at issue. This has not historically been shared between cedents and reinsurers within a quota share reinsurance transaction. Recently, thought leaders have put forth arguments and strategies for this risk to be transferred. And there are other examples that the panel will discuss. The panel will feature actuarial, reinsurance and legal experts, who explore the thought processes for either retaining or sharing these capital risks. The discussion should be lively as there is no consensus.The objective of this session is for participants to learn:-An understanding of various types of capital issues that typically are addressed through reinsurance.-Regulatory landscape for risk transfer.-New ideas about reinsurance as a tool for capital management.