XXX financing market braced for increased captive scrutiny

Security camera

A no-holds-barred fight is raging between US insurers and regulators over the future of reserve financing. The furore centres on redundant reserves – the additional statutory reserves for certain life products that go above and beyond what insurers’ internal economic models deem prudent – and the methods that US firms are deploying to fund them.

Yet, in this conflict, the battle lines are far from clear, with some state regulators taking the insurance industry’s side, while others are taking a s