Risks – Page 5 – [BonkNote]

2008 Financial Crisis 2008 Financial Crisis – Index The Global Economic & Financial Crisis: A Timeline, by Mauro F. Guillén – 96p the92ers.com/content/confederacy-dunces Economic Stabilization Act of 2008 (P.L. 110-343): Allowed the Secretary of the Treasury to purchase and insure “troubled assets” to help promote the strength of the economy and financial system. The act established…

Run on the Bank A bank run is the sudden withdrawal of deposits of just one bank. A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as a cascading failure. In a systemic banking crisis, all or almost all of the banking capital in a country is wiped out; this can…

TARP – Troubled Asset Relief Program TARP – MEDIA 2009 0408 – WSJ – U.S. to Offer Aid to Life Insurers: Firms Face Capital Crunch; How Much They Will Get From TARP Remains Unclear, By Scott Patterson, Deborah Solomon and Leslie Scism – [link] Shares of life insurers have fallen more than 40% this year. Their…

Liquidity In contrast, many of the investment-oriented products marketed in the last decade have shorter duration and require greater liquidity than was needed in earlier … 1992 – World Bank – The Life Insurance Industry in the United States: An Analysis of Economic and Regulatory Issues, by Kenneth M. Wright – 54p (p8) – An increase in…

Macroprudential Initiative – NAIC MACROPRUDENTIAL INITIATIVE (MPI) – NAIC Website Macroprudential (E) Working Group (MWG) – NAIC 2022 – Regulatory Considerations Applicable (But Not Exclusive) to PE Owned Insurers https://content.naic.org/sites/default/files/inline-files/Comments%206-13-22_0.pdf

Liquidation Receivership Troubled Companies UILA – Uniform Insurers Liquidation Act Asset Liquidation Disintermediation Life Liquidity Risk Working Group – NAIC Liquidity Liquidity Assessment Subgroup Liquidity Risk Liquidity vs SolvencyLapse Risk Run Runnable Run on the Bank Run on the Life Insurance Company “asset liquidation analysis” UILA – Uniform Insurers Liquidation Act 1940 – LR -…

Is the Insurance Industry Exposed to Systemic Risk? Systemic risk afflicts all life insurance and investment firms around the world. 2009 – AIG: Is the Risk Systemic?, 26 Feb 2009 – Report – 21p <YES> The insurance industry is exposed to systemic risk. The viability of the insurance sector rests on the perception that insurers can and…

Risk Classification 1980 – SOA – Risk Classification, Society of Actuaries – 18p 26. Five sets of congressional hearings have been held on a bill introduced by Senators Hatfield and Packwood and Representative Dingell that would prohibit classification on the basis of race, color, religion, sex, and national origin. Most of the testimony from the…

Pensions ERISA – Employee Retirement Income Security Act of 1974 Guaranty Funds NOLHGA – National Organization of Life and Health Insurance Guaranty Associations PBGC – Pension Benefit Guaranty Corporation PRT – Pension Risk Transfer Private Equity, Athene, government hearings – 2023 – Sherrod Brown, Elizabeth Warren Executive Life, Maxxam, Drexel, Lumber Company Delphi Lockheed Pacific…

Persistency 1981 – SOA – Patterns in Persistency, Society of Actuaries – 18p 1995 12 – SOA – 1994-1995 Year in Review, The Actuary, Society of Actuaries – 6p SOA Research and the Life Insurance Marketing and Research Association (LIMRA) completed a report on universal life persistency results that have never before been published on an…