ERM-408-14: The Captive Triangle: Where Life Insurers’ Reserve and Capital Requirements Disappear


Reading Source: ERM-408-14 Study Note

Topics Covered in this Reading

  • Summary Opinion
    • Captive Framework
    • Credit implications of life insurers’ use of captives - credit negatives already incorporated into ratings
    • Motivation for captives usage - capital efficiency a driving factor
    • A credit perspective: multiple negatives and few positives of captives
    • Quantifying life insurers’ use of captives
  • Life and Annuity
  • Accident & Health
    • Authorized vs. unauthorized reinsurers cloud analysis
    • The future for captive transactions
  • Appendix II - Increased focus on captives by regulators - a positive development