Lawsky: NAIC’s new reserving system will lead to shortfall
September 17, 2013 by Elizabeth Festa
with Lincoln National statement–
New York Department of Financial Services (DFS) Superintendent Ben Lawsky says that the life insurance industry continues to be under-reserved and that the compromise constructed by state regulators for a new reserving method has failed, possibly imperiling policyholders and even the system of state-based regulation.
The issue is underpinned by one of the most important discussions happening in insurance regulation today, five years after the financial crisis and more than two decades after the collapse of huge life insurers in New York, like Executive Life of New York (ELNY), and elsewhere that left policyholders with, at the end of the road, broken annuity promises: capital.
Is there enough of it to keep policyholders safe now and well into the future? Click here to read…
