Liquidity Risk Is Still A Fluid Issue For Regulators
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The goal of measuring an insurer's liquidity risk continues to receive general support from companies, but there are disagreements over how this should be achieved.
When the National Association of Insurance Commissioners meets in early December, regulators will continue to discuss ways to track liquidity risk, ranging from issuing a circular letter similar to the one that New York now uses, to including disclosure of liabilities in the statutory financial statements or blanks, that companies are required to file.
During a discussion on the issue, Larry Gorski, chief actuary with the Illinois insurance department, raised the possibility of having a company point person regulators could go to with questions about an insurer's liquidity.
Insurers would be required, Gorski said, to come to regulators with information on liquidity risks, if there were any new developments.