What is reinsurance?

[Life Insurance 101 Series: This series features IMPACT posts that detail the breadth of the industry’s reach and benefits provided to consumers.]  Reinsurance is a risk management tool used by life insurers to spread risk and manage capital. With reinsurance, a life insurer transfers some of its insurance risk to another insurer. In effect, reinsurance … Continue reading "What is reinsurance?"

Proposed Fed Rule Shows Encouraging Signs for Consumers’ Long-Term Needs

The Federal Reserve Board (Fed) published last Friday its long-awaited capital rules proposal for bank or thrift holding companies with significant insurance operations. The rules are intended to ensure that these groups remain stable Life insurers are still parsing the details of the 158-page proposal. But three pages tucked in the front are very clear … Continue reading "Proposed Fed Rule Shows Encouraging Signs for Consumers’ Long-Term Needs"

Banking Committee Spotlight on Standards Important for Consumer

The Senate Banking Committee is digging into an important topic today with a hearing that probably won’t attract any TV news crews. That’s too bad, because the topic – insurance capital standards – is important. Improper insurance capital standards can hamper the availability and affordability of consumer products like life insurance and annuities. Right now, … Continue reading "Banking Committee Spotlight on Standards Important for Consumer"