US focus: Pressure mounts over US life reserves
A row has broken out in the US between regulators and insurers over the level of reserves insurers must legally hold against their life products. As regulators crack down after the financial crisis, insurers say the requirements they are making are too high. Clive Davidson reports
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
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