Who’s Concentrating? Trends In The Life Insurance Sector And The Need For Strong Reinsurance And Investment Risk Management − Speech By Charlotte Gerken, Bank Of England, Executive Director, Insurance Supervision, Given At The Bank Of America 27th Annual Financials CEO Conference

Charlotte Gerken speaks about concentration risks in Life Insurance, coming from:

• increasing longevity reinsurance;
• use of funded reinsurance; 
• and growth of illiquid assets.

Charlotte says the Prudent Person Principle (PPP) is important to address these risks. But regulatory requirements need to support good risk management.

The PRA is thinking about how to address concentration risk. This includes how to manage risk from reinsurance, and the matching adjustment (MA) review.

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