Lessons for State Insurance Regulation
Possibly a silly question but in the Wiki there is a bullet which I could use some clarification on:
Question: identify areas that regulators have targeted for improvements to the U.S. insurance regulatory system
Bullet - unregulated affiliates: impact on insurers
I understand that unregulated affiliates of insurers could be an area of interest to regulators when trying to improve the U.S. insurance regulatory system, but I feel like the "impact on insurers" is meant to convey more context and I'm not sure exactly what (other than there will be some tangential impact on insurers?). Maybe this just isn't super important either way but I was hoping to get some clarification on what is meant by this.
Thanks in advance!
Comments
The three bullets have been taken word for word from the fourth paragraph of text page 14. That is, there is no further text elaboration on these bullets. However, footnote 26 on the same page gives a little bit more context to the bullet you point out.
in the same question the bullet "rating agencies: review reliance on rating agencies in the RBC system" I can't seem to find anything on rating agencies in the Odomirok.19-RBC article.
There are other articles that talk about rating agency issues (like they are funded by insurance companies who pay for a rating) but is there something specific to RBC we should consider?
Even if it is not spelled out in Odomirok, the credit risk elements of RBC (i.e. reinsurance recoverables) will have some reliance on the company ratings from rating agencies.