Euromoney’s International Investment & Securities Review 2008
A New Age: Life Insurance Securitisation
In the past five years, the United States life insurance industry has begun a new phase in its management of risk. The industry has adopted and developed securitisation techniques to address challenges raised by its regulatory regime and strengthen return on equity. At the same time, securitisation has provided investors the ability to receive exposure to risks uncorrelated with traditional investments. To date the life insurance industry has utilised three basic securitisation transaction types: redundant reserve, embedded value and catastrophic mortality.