Ian Smith’s Post

The Bank of England will consider intervening to restrict the flow of assets being channelled overseas through life reinsurance deals if they do not adequately tighten controls protecting pension savers, the Financial Times has reported. Gareth Truran, executive director for insurance supervision at the BoE’s Prudential Regulation Authority, said the BoE was concerned that the growth in funded reinsurance transactions “could, if not properly controlled, lead to a rapid build-up of risks in the sector”. Read the full story here: https://ow.ly/qrja50SM9ng #BankOfEngland #LifeReinsurance #InsuranceSupervision

The reinsurance arrangements over long-term liabilities in the UK (and US) are in the cross-hairs of regulators. Insurers using asset-intensive reinsurance should get ahead of potential scrutiny by strengthening governance and controls and considering reinsurance and concentration risk in detail in their own stress testing. #insurance #reinsurance https://lnkd.in/eznNM-WZ

A very balanced article by InsuranceERM on the hot topic of asset-intensive reinsurance (at least “hot” within the life insurance sector). As a former regulator, I completely understand the increased regulatory attention around the transformational changes happening in the life sector. A few key observations I make in the article: ✅ Bermuda and the Bermuda Monetary Authority provide a sophisticated global regulatory regime and are adapting their regulations in response to market shifts. ✅ Bermuda provides companies like Athene an efficient place to raise capital which is essential to the sector in developing and offering consumer products designed to address the #global #retirement #gap. ✅ Regulators should continue to address emerging #regulatory #arbitrage risks which poses a contagion risk to consumers and companies alike. #Insurance #Reinsurance #LifeInsurance #Regulation #Bermuda #Retirement #FinancialStability #Athene #CapitalMarkets #ConsumerProtection #RegulatoryInsights #InsuranceERM

A new report has said that #reinsurers are focusing more on providing capital protection than stabilising their earnings, partly due to the changes in the market from the inflation event and high-interest rate market over the last few years – and the knock-on effect to investments is being felt. The report, from AM Best, said that reinsurers have taken corrective measures after several years of sub-par underwriting underperformance, but that current claims activity is being driven more by elevated medium-sized events and secondary perils than by single large-scale events. #capitalprotection #claimsactivity #insurance #investmentstrategy #hardmarket #investment Read more here 👇

They might run into regulatory issues that will not pass muster. Re is the superior product. Reinsurers should offer share returns on collateral! https://lnkd.in/e9wW88MC #reinsurance #reinsurer #surety #suretybond #fidelitybond #insurance #suretybonds #re #captive

What is the role of private markets at different points in the credit cycle? Anthony Beachey look at what insurance investors need to be aware of, and most careful of, when trying to use a private markets allocation strategically? Insurers’ exposure to private credit has exploded over the past couple of decades. According to the Mercer and Oliver Wyman 2024 Global Insurance Investment Survey, 73% of insurers already invest in private markets or plan to do so in 2024, continuing the trend seen in the 2023 survey. Moreover, that trend is set to continue in the long run, according to analysis by Moody's’s. The ratings agency found that almost 80% of insurers plan to increase their holdings of at least one class of private credit over the long term. So, what should insurers be doing? We explore the issue in full - with comment from mark meiklejon, Head of Private Market Investment Specialists at Aviva Investors, Oliver Little, CAIA, Head of UK Insurance Solutions at Neuberger Berman, Laura Parrott, Head of Private Fixed Income at Nuveen, a TIAA company, and Marc Lickes, Managing Director, Private Debt, StepStone Group. #privatemarkets #creditcycle #investmentoperations #investmentcycle #investment #insurance #credit #marketallocation Read the article in full and see their insights here 👇

The European insurance sector’s exposure to the rising risks of commercial real estate (CRE) is low, at about 4% of assets, with most insurers facing minimal risk to capital or ratings from falling CRE valuations, Fitch Ratings says. Just under half of the exposure is direct. Indirect exposure is mostly through holdings of CRE sector equities and loans. More here: https://lnkd.in/eQm7wN7r #commercialrealestate #insurance

wealth building with insurance

Reinsurance data in 2023: Cedants manage cessions in hard market Analysis of 2023 statutory data shows that Californian insurers are leaning more heavily on reinsurers but at a nationwide level, premium cessions were more stable. https://bit.ly/4dG3T7b #insuranceinsidernews #insurance

🔑 Ensuring SMSF Compliance: Key Considerations for Insurance, Investments & Property 📊 When managing a Self-Managed Super Fund (SMSF), understanding the rules around insurance, investments, and property is essential to maintaining compliance and protecting your future. Stay informed with our latest article on what you need to know to avoid pitfalls and make the most of your SMSF. Read now ➡️ https://bit.ly/3ArGxng #SMSF #Superannuation #FinancialPlanning #Compliance #Investments #Property #Insurance #SuperFund #SuperannuationExpert