12.09.24

FSOC Tells States To Watch Life Insurers More Carefully

by: Allison Bell

The Financial Stability Oversight Council (FSOC) said in an annual report that state insurance regulators and the National Association of Insurance Commissioners (NAIC) need to get more information about life and annuity issuers' private market investments and offshore reinsurance. The statement comes amid worries about how closely connected life insurers are to private equity firms and other asset managers. At the end of 2023, life insurers had about $800 billion in private credit assets and other nontraditional assets, according to the report, and many used outside asset managers to manage more than 10% of all of their assets. Private equity-owned life insurers held about 20% of the life sector's cash and investments.

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