US focus: Pressure mounts over US life reserves

Pressure mounts over US life reserves

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How much capital an insurer should hold in reserve to cover its liabilities is always a potential point of contention between regulators and insurers. Regulators would err on the side of more than enough, while insurers favour enough and no more.

The fallout from the financial crisis has exacerbated the conflict in the US, where a row over the rules of reserving for certain life products has brought regulators, who are under pressure to demonstrate a firm line on solvency, up against insurers wh