Risks – Page 8 – [BonkNote]

Investment-Oriented Products 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 1987 – SOA -…

Derivatives Derivatives, Options, Swaps etc – Government Hearings Commodity Futures Modernization of 2000 1984 – SOA – Options and Futures — A Teaching Session, Society of Actuaries – 26p 1994 0518 – GAO – Financial Derivatives: Actions Needed to Protect the Financial System – GGD-94-133 – 200p 1994 – SOA – NAIC Model Investment Law…

FSOC – Prudential 2013 0909 – FSOC/Prudential – Resolution Approving Final Deterministation Regarding Prudential Financial Inc. (Woodall, Huff, Edward J. DeMarco, Acting Director, Federal Housing Finance Agency) – The Chair of the Securities and Exchange Commission recused herself from the vote. – 23p FSOC – Prudential – Determination and Dissents – [BonkNote] 2013 0919 -…

FSOC – MetLife Designation MetLife v FSOC – Legal Case Run – Implausible – LIRP – Reputational Risk / Future Shock 2007 – IAA (International Actuarial Association) – Measurement of Liabilities for Insurance Contracts: Current Estimates and Risk Margins, IAA ad hoc Risk Margin Working Group – 170p (p156) – E6.2.3 – The following are some considerations…

Insolvencies Failures In the early 1990s, there were a number of large insolvencies — Willis B. Howard Jr., NOLHGA – National Organization of Life and Health Insurance Guaranty Associations 1998 – SOA – Once in a Hundred Years, Society of Actuaries – 22p 1991 0427 – Los Angeles Times – State Allegedly Knew Executive Life Was…

Leverage Walker v Life Insurance Company of the Southwest 3. Leverage in the financial sector. The pandemic stressed the resilience of banks, but they remain well capitalized. Leverage at broker-dealers also remains low. In contrast, measures of leverage at life insurance companies are at post-2008 highs….. (p7) 2020 11 – FRB – Financial stability report…

Run on the Life Insurance Company Run (p47) – Dennis ROSS (R-FL). There hasn’t been a run on life insurance, has there? Are people all of a sudden going to go and cash in their life insurance policies? Because if they are, then our serious consequences for economic structure are way out of line. 2015…

Pricing Pricing, to the actuary, involves the determination of charges related to a set of benefits. — Robert P. Hill 1990 – SOA – Adequacy of Pricing Considerations, Society of Actuaries – 18p Abstract: Traditional life and health products have long been regarded as non-interest sensitive. Pricing has often been done with only a single…

Disintermediation Run Disintermediation of traditional life insurance is most severe for policies sold as savings instruments. — George R. Dinney 1982 – SOA – Programs to Conserve Traditional Life Insurance Policies, Society of Actuaries – 18p When a policyholder feels deceived, the disintermediation potential is enhanced. — Allen D. Booth, a consultant in the Milwaukee office of…

Liquidity Risk We have a committee within the ACLI that has been looking into the whole liquidity question, and on the basis of those discussions, I believe there is much more liquidity in the industry today. If I recall correctly, the biggest surprise came about 15 years ago, when the first discussions were held with…