US regulators grapple with proposed XXX captives fix

States concerned over use of ‘deregulatory' valuation approach

negotiate-justice

US state regulators are at loggerheads over plans to regulate the use of captive insurers used by life companies to finance so-called redundant reserves. At a meeting of the National Association of Insurance Commissioners (NAIC) in early April, state regulators discussed the Rector report (a paper drawn up by Neil Rector of Rector & Associates, a regulatory consultancy), which outlined a way forward on the controversial issue of how insurers should manage high statutory reserves on term l