Monday, September 19, 2022
HomeLife InsuranceLife Insurers Ought to Plan for Stress: Barings' Insurance coverage Head

Life Insurers Ought to Plan for Stress: Barings’ Insurance coverage Head

What You Must Know

  • Some say life insurers ought to match long-duration advantages with long-duration property, however Griffin disagrees.
  • One factor Griffin does fear about: Dangerous insurer decisions about asset durations.

Ken Griffin is in command of serving to life insurance coverage and annuities hold their guarantees to your purchasers.

Griffin is the brand new head of insurance coverage options at Barings, a Charlotte, North Carolina-based asset administration arm of MassMutual. Barings has about $349 billion in property, together with $223 billion in insurance coverage property below administration.

Griffin will work with insurers to handle a number of the funding portfolios that assist life insurance coverage, incapacity insurance coverage, long-term care insurance coverage and annuity advantages ensures.

He earned a bachelor’s diploma in enterprise from the College of North Carolina at Chapel Hill, then went to work as an actuarial analyst at a property and casualty insurer.

He moved into the life insurance coverage and annuity world, as a director at Swiss Re, in 1999. He labored for 16 years as head of insurance coverage options at Conning, and about 5 years as head of asset-liability matching technique at Brighthouse Monetary, earlier than becoming a member of Barings in July.

We requested Griffin, by way of electronic mail, what he’s seeing on the earth of life insurance coverage firm property now that markets are extra risky and rates of interest are heading increased.

THINKADVISOR: For insurers that difficulty life insurance coverage and annuities, what sorts of preparations or methods have labored particularly nicely, or particularly poorly, over the previous 12 months?

KEN GRIFFIN: Given the large market swings in charges and spreads we have now seen over the previous 12 months, the perfect methods are people who diversify the danger profiles of insurer funding portfolios.

This would come with elevated allocations to asset courses that pay an illiquidity premium.

Poor methods embody firms that try to period match their liabilities which requires poorly timed “period chasing.”

During times of risky charges, firms lengthen period when charges are low and legal responsibility durations have elevated, and shorten period when charges are excessive.

What impact, if any, have you ever skilled on account of the COVID-19 pandemic, the upheaval in Europe, and fluctuations in change charges? What have you ever realized from that?

Longer-term strategic views might help climate the storms skilled over the past couple of years.

Knee-jerk reactions to market occasions are by no means applicable, although the inclinations to react could also be fairly sturdy.



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