The American Council of Life Insurers (ACLI) has defended the value of captive insurance in the face of criticism of so-called ‘shadow insurance’ levelled at the life sector by the New York regulator.
Far from being part of a murky world, the ACLI said that such entities are “without exception, reviewed and approved by regulators”. Nevertheless, the ACLI has indicated that it fully supports efforts to enhance disclosure. The Council is working closely with the National Association of Insurance Commissioners to encourage greater transparency.
Jack Dolan, vice president, media relations at ACLI told Captive International: “with greater transparency, which we support, will come greater recognition of the important role captives play in risk management.”
The ACLI affirmed that “captive reinsurance transactions provide life insurers a means to spread the risks they assume. They also enable life insurers to deploy capital efficiently and, in turn, help them set prices as competitively as possible. Captive reinsurance transactions represent an important and positive element of a competitive life insurance marketplace.”
ACLI, captive reinsurance, offshore, New York